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 $1,075,000 S 430 48 15 $150,000 S 130,000 $ 80,000 S 105,000 S 300,000 Total sales revenue Selling price per pair of skis Variable selling expense per pair of skis ariable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning 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 Selling and administrative expenses:

Explanation / Answer

Contribution per pair = 362500/2500 = 145

# no. of pair = 1075000/430 = 2500

TRADITIONAL INCOME STATEMENT Sales 1075000 Less COGS 275000 80000+300000-105000 Profit 800000 Less Variable Selling & Admin Exp 157500 1075000/430*(48+15) Less Fixed Selling & Admin Exp 280000 Net Profit 362500

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