The Alpine House, Inc., is a large retailer of snow skis. The company assembled

Question

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31 Amount Total sales revenue Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis$ Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $ 924,000 420 47 19 $ 145,000 $ 125,000 $ 60,000 $ 110,000 $ 305,000 Required 1. Prepare a traditional income statement for the quarter ended March 31 The Alpine House, Indc Traditional Income Statement Selling and administrative expenses

Explanation / Answer

1.traditional income statement for the quarter ended march 31.

note : number of units sold = sales / sale price per unit

=>924,000 / 420

=>2200 units

2.contribution format income statment:

3.contribution toward fixed expenses and profits for each pair of skis sold during the quarter?

contribution for each pair of skis was = $238.

contribution per unit = total contribution / number of units sold

=>523,800 / 2200

=>$238.

total sales revenue 924,000 less:cost of goods sold (beginning merchandise + purchases - ending merchandise) => (60,000+305,000-110,000) (255,000) Gross margin 699,000 selling and administrative expenses administrative expense (2200*19) +(125,000) 166,800 selling expenses (2200 units*47) + (145,000) 248,400 (415,200) net operating income 253,800

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.