Topper Sports, Inc._Income Statement_Contribution Margin

Question # 00004983 Posted By: ACCOUNTS_GURU Updated on: 12/08/2013 11:35 PM Due on: 12/31/2014
Subject Accounting Topic Accounting Tutorials:
Dot Image

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:


Selling Price per racket: $43.00

Variable Expenses per racket:

Production: $17.20

Selling (5% of selling price): $2.15


Selling Price per Racket: $62.00

Variable Expenses Per Racket:

Production: $21.70

Selling (5% of selling price): $3.10


Selling Price per Racket: $87.00

Variable Expenses per Racket:

Production: $26.10

Selling (5% of selling price): $4.35

All sales are made through the company’s own retail outlets. The Racket Division has the following fixed costs:

Per Month

Fixed Production Costs: $107,000

Advertising Expense: $108,000

Administrative Salaries: $52,000

Total: $267,000

Sales, in units, over the past two months have been as follows:

Standard (April): 4,000

Deluxe (April): 3,000

Pro (April): 7,000

Total (April): 14,000

Standard (May): 11,000

Deluxe (May): 3,000

Pro (May): 6,000

Total (May): 20,000

a. 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).

Dot Image
Tutorials for this Question
  1. Tutorial # 00004772 Posted By: ACCOUNTS_GURU Posted on: 12/08/2013 11:37 PM
    Puchased By: 2
    Tutorial Preview
    The solution of Topper Sports, Inc._Income Statement_Contribution Margin...
    Topper_Sports,_Inc._Income_Statement_Contribution_Margin_.xlsx (10.63 KB)

Great! We have found the solution of this question!

Whatsapp Lisa