accounting-Topper Sports, Inc. produces high quality sports equipment

QUESTION

Topper Sports, Inc. produces high quality sports equipment. The company’s Racket Division manufactures three tennis rackets- the Student, the Deluxe, and the Pro- that are widely used in amateur day. Selected information on the rackets is given below:StandardSelling Price per racket: $43.00Variable Expenses per racket:Production: $17.20Selling (5% of selling price): $2.15DeluxeSelling Price per Racket: $62.00Variable Expenses Per Racket:Production: $21.70Selling (5% of selling price): $3.10ProSelling Price per Racket: $87.00Variable Expenses per Racket:Production: $26.10Selling (5% of selling price): $4.35All sales are made through the company’s own retail outlets. The Racket Division has the following fixed costs:Per MonthFixed Production Costs: $107,000Advertising Expense: $108,000Administrative Salaries: $52,000Total: $267,000Sales, in units, over the past two months have been as follows:Standard (April): 4,000Deluxe (April): 3,000Pro (April): 7,000Total (April): 14,000Standard (May): 11,000Deluxe (May): 3,000Pro (May): 6,000Total (May): 20,000a.Prepare contribution format income statements for April. (Round the “Total percent” answers to one decimal place. Input all amounts as positive values except losses which should be indicated by minus sign. Omit the “$” and “%” signs in your response).

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