Topper Sports, Incorporated, produces high-quality sports equipment. The company’s Racket Division manufactures three te

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Topper Sports, Incorporated, produces high-quality sports
equipment. The company’s Racket Division manufactures three tennis
rackets—the Standard, the Deluxe, and the Pro—that are widely used
in amateur play. Selected information on the rackets is given
below:
All sales are made through the company’s own retail outlets. The
Racket Division has the following fixed costs:
Sales, in units, over the past two months have been as
follows:
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?
5. Assume that sales of the Standard racket increase by $20,600.
What would be the effect on net operating income? What would be the
effect if Pro racket sales increased by $20,600? Do not prepare
income statements; use the incremental analysis approach in
determining your answer.