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Topper Sports, Incorporated Income Statement for April Standard Deluxe Pro Total Amount % Amount % Amount % Amount % Sales V $ 2,000 X $ 1,000 X $ 5,000 X $ 8,000 X Variable expenses: Production V 110,000 X 70,000 X 500,000 X 680,000 X Selling V Total variable expenses 110,000 0 70,000 0 500,000 0 680,000 0.0 $ $ (108,000) 0 0 (69,000) $ (495,000) $ (672,000) 0.0 Fixed expenses: Total fixed expenses 0 Net operating income $ (672,000)Topper Sports, Incorporated Income Statement for May Standard Deluxe Pro Total Amount % Amount % Amount % Amount % Sales $ 8,000 X $ 1,000 X $ 3,000 X $ 12,000 X Variable expenses: Sales X 440,000 X 70,000 X 300,000 X 810,000 X Production V 264,000 35,000 108,000 407,000 Selling V 22,000 3,500 15,000 40,500 Total variable expenses 726,000 0 108,500 0 423,000 0 1,257,500 0.0 $ (718,000) $ Contribution margin V 0 (107,500) 0 $ (420,000) 0 $ (1,245,500) 0.0 Fixed expenses: Total fixed expenses 0 Net operating income $ V (1 245 500)Topper Sports, Incorporated, produces highquality sports equipment. The company's Racket Division manufactures three tennis racketsthe Standard, the Deluxe, and the Prothat are widely used in amateur play. Selected information on the rackets is given below: Standard Deluxe Pro Selling price per racket $ 55.00 $ 70.00 $ 100.00 Variable expenses per racket: Production $ 33.00 $ 35.00 $ 36.00 Selling (5% of selling price) $ 2.75 $ 3.50 S 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following xed costs: Per Month Fixed production costs $ 142,000 Advertising expense 122,000 Administrative salaries 72,000 Total $ 336,000 Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2,000 1,000 5,000 8,000 May 8,000 1,000 3,000 12,000 Required: 1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution format income statements for May. 3. Compute the Racket Division's break-even point in dollar sales for April. 4. Will the break-even point would be higher or lower with May's sales mix than with April's sales mix

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