I need help on question 2 and 3. The Alpine House, Inc., is a large retailer of

Question

I need help on question 2 and 3.

The Alpine House, Inc., is a large retailer of snow skis. Th below for the quarter ended March 31 company assembled the information shown Amount Total sales revenue Sellin lling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skisS Total fixed selling expense Total fixed administrative expense $1,290,000 430 49 15 $ 155,000 $ 115,000 $80,000 $ 105,000 $ 290,000 eginning merchandise inventory Ending merchandise inventory Merchandise purchases Required 1. Prepare a traditional income statement for the quarter ended March 31 The Alpine House, Inc. Traditional Income Statement Sales Cost of goods sold Gross margin $1,290,000 265,000 1,025,000 Selling and administrative expenses Selling expenses Administrative expenses 302,000 160,000 462,000 Net operating income $ 563,000

Explanation / Answer

2.contribution format income statement.

note number of skis = total sale revenue / selling price =>$1,290,000 / 430

=>3,000 skis.

3.

contribution of each pair = total contribution / number of pairs.

=>833,000 / 3000

=>$277.666

=>$278...(rounded to nearest whole dollar)

Sales $1,290,000 variable expenses: cost of goods sold (80,000+290,000 - 105,000) 265,000 selling expenses (49 * 3,000) 147,000 administrative expense (15*3,000) 45,000 457,000 contribution margin 833,000 Fixed expenses: selling expenses 155,000 administrative expenses 115,000 270,000 net operating 563,000

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