Mary parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. for this reason, she was shocked to find that even though sales have increased, profits for the current month—may—are down substantially from april. sales, in sets, for the last two months are given below: standard deluxe total april 5,700 3,700 9,400 may 2,700 6,700 9,400 required: 1-a. prepare contribution format income statements for april. 1-b. prepare contribution format income statements for may. 3-a. compute the break-even point in dollar sales for april. 3-b. would the break-even point in may be higher or lower than the break-even point in april

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?