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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: Standard Deluxe Pro Selling price per racket $ 60.00 $ 90.00 $ 100.00 Variable expenses per racketi Production $36.00 $ 45.00 $36.00 Selling (58 of selling price) $ 3.00 $ 4.50 $ 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Fixed production costs Advertising expense Administrative salaries Total Per Month $ 136,000 116,000 66.000 $ 318,000 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? 5. Assume that sales of the Standard racket increase by $21,600. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,600? Do not prepare income statements; use the incremental analysis approach in determining your

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