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: Selling price per racket Variable expenses per racket: Fixed production costs Advertising expense Administrative salaries Total Production Selling (5% of selling price) $36.00 $ 3.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month $ 132,000 112,000 62,000 306,000 Sales, in units, over the past two months have been as follows: Standard Deluxe 2,000 1,000 Pro 5,000 8,000 8,000 1,000 3,000 12,000 April May Sales Variable expenses: Production Selling 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. Would the break-even point 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 $21,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,200? 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 18 Total variable expenses Fixed expenses: Total fixed expenses Req 1A Req 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Deluxe OO Standard $ 60.00 Req 3 Standard Amount $120,000 Total 72,000 72,000 $ 48,000 Req 4 % 100 Deluxe $ 90.00 $ 45.00 $ 4.50 Amount $90,000 720 45,000 72 28 45,000 $ 45,000 Pro $ 100.00 Answer is not complete. $36.00 $ 5.00 < Req 1A 45 Pro % Amount 100 $ 500,000 180,000 45 180,000 55 $ 320,000 % Amount 100 $ 710,000 Req 18 > 0 Total 100 297,000 297,000 $ 413,000 0 413,000 % 100 0.0 100.0
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: Selling price per racket Variable expenses per racket: Fixed production costs Advertising expense Administrative salaries Total Production Selling (5% of selling price) $36.00 $ 3.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month $ 132,000 112,000 62,000 306,000 Sales, in units, over the past two months have been as follows: Standard Deluxe 2,000 1,000 Pro 5,000 8,000 8,000 1,000 3,000 12,000 April May Sales Variable expenses: Production Selling 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. Would the break-even point 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 $21,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,200? 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 18 Total variable expenses Fixed expenses: Total fixed expenses Req 1A Req 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Deluxe OO Standard $ 60.00 Req 3 Standard Amount $120,000 Total 72,000 72,000 $ 48,000 Req 4 % 100 Deluxe $ 90.00 $ 45.00 $ 4.50 Amount $90,000 720 45,000 72 28 45,000 $ 45,000 Pro $ 100.00 Answer is not complete. $36.00 $ 5.00 < Req 1A 45 Pro % Amount 100 $ 500,000 180,000 45 180,000 55 $ 320,000 % Amount 100 $ 710,000 Req 18 > 0 Total 100 297,000 297,000 $ 413,000 0 413,000 % 100 0.0 100.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
![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:
Selling price per racket
Variable expenses per racket:
Fixed production costs
Advertising expense
Administrative salaries
Total
Production
Selling (5 of selling price)
$36.00
$ 3.00
$36.00
$5.00
All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs:
April
May
Sales, in units, over the past two months have been as follows:
Total
Standard Deluxe Pro
2,000 1,000 5,000
1,000 3,000 12,000
8,000
8,000
Reg 1A
Sales
Variable expenses:
Production
Selling
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. Would the break-even point 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 $21,200. What would be the effect on net operating income? What would be
the effect if Pro racket sales increased by $21,200? Do not prepare income statements; use the incremental analysis approach in
determining your answer.
Reg 1B
Complete this question by entering your answers in the tabs below.
Total variable expenses
Fixed expenses:
Per Month
$ 132,000
112,000
62,000
$ 306,000
Total fixed expenses
✔
✓
Req 3
Standard
$ 60.00
Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place)
Topper Sports, Incorporated
Income Statement for April
Deluxe
$
Amount
$ 120,000
Standard
Req 4
72,000
48,000
%
100
72,000✔✔ 72 x
Deluxe
$ 90.00
$ 45.00
$ 4.50
Req 5
Amount
$90,000
45.000
45,000 ✓
72
28 $ 45,000
Answer is not complete.
Pro
$ 100.00
< Req 1A
45 X
%
Amount
100 $ 500,000
45
55 $
Pro
180,000
180,000
320.000
%
Req 1B >
100
Total
Amount
S
$ 710,000 →
297,000✔
0
297,000
100 $ 413,000
0
$ 413,000
%
100
0.0
100.0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4cf8db3-c4c5-4f31-8215-092f4340668c%2F4b28c069-146e-4c03-966c-a8066c03c708%2Fm05tnrm_processed.png&w=3840&q=75)
Transcribed Image Text: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:
Selling price per racket
Variable expenses per racket:
Fixed production costs
Advertising expense
Administrative salaries
Total
Production
Selling (5 of selling price)
$36.00
$ 3.00
$36.00
$5.00
All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs:
April
May
Sales, in units, over the past two months have been as follows:
Total
Standard Deluxe Pro
2,000 1,000 5,000
1,000 3,000 12,000
8,000
8,000
Reg 1A
Sales
Variable expenses:
Production
Selling
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. Would the break-even point 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 $21,200. What would be the effect on net operating income? What would be
the effect if Pro racket sales increased by $21,200? Do not prepare income statements; use the incremental analysis approach in
determining your answer.
Reg 1B
Complete this question by entering your answers in the tabs below.
Total variable expenses
Fixed expenses:
Per Month
$ 132,000
112,000
62,000
$ 306,000
Total fixed expenses
✔
✓
Req 3
Standard
$ 60.00
Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place)
Topper Sports, Incorporated
Income Statement for April
Deluxe
$
Amount
$ 120,000
Standard
Req 4
72,000
48,000
%
100
72,000✔✔ 72 x
Deluxe
$ 90.00
$ 45.00
$ 4.50
Req 5
Amount
$90,000
45.000
45,000 ✓
72
28 $ 45,000
Answer is not complete.
Pro
$ 100.00
< Req 1A
45 X
%
Amount
100 $ 500,000
45
55 $
Pro
180,000
180,000
320.000
%
Req 1B >
100
Total
Amount
S
$ 710,000 →
297,000✔
0
297,000
100 $ 413,000
0
$ 413,000
%
100
0.0
100.0
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