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: Selling price per racket Variable expenses per racket: Fixed production costs Advertising expense Administrative salaries Production Selling (5% of selling price) All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month April May Standard $ 45.00 $ 140,000 120,000 70,000 $ 330,000 $ 27.00 $ 2.25 Total Sales, in units, over the past two months have been as follows: Standard Deluxe Pro 1,000 5,000 2,000 8,000 8,000 1,000 3,000 12,000 Deluxe $ 70.00 Total $ 35.00 $ 3.50 Pro $ 100.00 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, $36.00 $ 5.00 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 $22,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,000? Do not prepare income statements; use the incremental analysis approach in determining your answer.
Complete this question by entering your answers in the tabs below. Req 1A Variable expenses Req 18 Total variable expenses Fixed expenses Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Deluxe Req 3 Total fixed expenses Req 4 Standard Amount Req 5 % Amount % Amount Pro % Total Amount %
Complete this question by entering your answers in the tabs below. Req 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for May Deluxe Req 1A Req 18 Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Req 3 Req 4 Standard Amount % Amount % Amount Pro Total Amount %
Sales, in units, over the past two months have been as follows: Standard Deluxe. Pro 2,000 1,000 5,000 8,000 1,000 April May 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. Total 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 $22,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. Req 1A 8,000 3,000 12,000 Complete this question by entering your answers in the tabs below. Req 18 Req 3 Reg 4 Reg 5 Compute the Racket Division's break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar.) Break-even point in dollar sales <Req 18 Req 4 >
Sales, in units, over the past two months have been as follows: Standard Deluxe 2,000 1,000 8,000 1,000 April May 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 $22,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. Complete this question by entering your answers in the tabs below. Reg 1A Pro Total 5,000 8,000 3,000 12,000 Req 18: Req 3 Effect on Net operating income Req 4 Assume that sales of the Standard racket increase by $22,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. Standard < Req4 Reg 5 Pro Reg
tes Topper Sports, Incorporated, produces high-quality sports equipment. The tes Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures thre
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