Can you please provide calculations and answers to the requirement I would truly appreciate it. Thank you so much for helping me **Topper Sports, Incorporated: Racket Division Analysis**Topper Sports, Incorporated, specializes in high-quality sports equipment, specifically tennis rackets—Standard, Deluxe, and Pro models—that are popular in amateur play. Below is selected information about these rackets:| | Standard | Deluxe | Pro ||----------------------|----------|--------|--------|| Selling price per racket | $45.00 | $70.00 | $100.00 || Variable expenses per racket: | | | || - Production | $27.00 | $35.00 | $36.00 || - Selling (5% of selling price) | $2.25 | $3.50 | $5.00 |All sales occur through the company’s retail outlets, with the following fixed costs:| | Per Month ||----------------------|-----------|| Fixed production costs | $138,000 || Advertising expense | $118,000 || Administrative salaries | $68,000 || **Total** | **$324,000** |**Sales, in units, over the past two months:**| | Standard | Deluxe | Pro | Total ||----------|----------|--------|-----|-------|| April | 2,000 | 1,000 | 5,000 | 8,000 || May | 8,000 | 1,000 | 3,000 | 12,000 |**Required Analysis:**1. **Prepare contribution format income statements for April.**2. **Prepare contribution format income statements for May.**3. **Compute the Racket Division’s break-even point in dollar sales for April.**4. **Analyze whether the break-even point is higher or lower with May’s sales mix compared to April’s.**5. **Assume an increase in Standard racket sales by $21,800. Determine the effect on net operating income. Also, evaluate the effect if Pro racket sales increased by $21,800, using the incremental analysis approach.** The document is a table designed for preparing contribution format income statements for Topper Sports, Incorporated, specifically for the month of May. The statement needs to show "Total percent" answers rounded to one decimal place.### Table Structure:- **Columns:** - The table is divided into four main columns: Standard, Deluxe, Pro, and Total. - Each of these columns is further divided into "Amount" and "%" to separately capture monetary values and their percentages.- **Rows:** - **Variable Expenses:** A section designated for listing variable expenses. This section includes: - Individual lines for listing various expenses. - A summary line for Total Variable Expenses, which should calculate the total amounts and percentages for each product type and in total. - Currently, all values for variable expenses are set to 0. - **Fixed Expenses:** A section for listing fixed expenses, including: - Individual lines for fixed expense categories. - A summary line for Total Fixed Expenses, which should provide total amounts and percentages. - All fixed expense values are presently 0.This structure allows for a detailed breakdown of expenses associated with different product categories, enabling clear financial analysis. The statement is formatted in a way that would facilitate a comparison of variable and fixed costs against total revenues in a contribution income statement format.

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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: Selling price per racket Variable expenses per racket: Fixed production costs Advertising expense Administrative salaries Total 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 $ 138,000 118,000 68,000 $ 324,000 April May Sales, in units, over the past two months have been as follows: Standard 2,000 8,000 Standard $45.00 Deluxe 1,000 1,000 $ 27.00 $ 2.25 Pro 5,000 3,000 Total Deluxe $ 70.00 8,000 12,000 Pro $ 100.00 $ 35.00 $ 3.50 $36.00 $5.00 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. 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 $21,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,800? Do not prepare income statements; use the incremental analysis approach in determining your answer.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q