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:

Prepare a traditional income statement for the quarter ended March 31.

     

Prepare a contribution format income statement for the quarter ended March 31.

     

What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter? (Round your final answer to nearest whole dollar amount.)

     

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

Explanation / Answer

Contibution per pair = 830700 / 3100

= 267.97

= $268 rounded off

#No. of pairs = 1271000/410 = 3100

TRADITIONAL INCOME STATEMENT Basis    Amount ($) Sales 1271000 Less COGS 65000+285000-105000 245000 Profit 1026000 Less Variable Selling & Admin Exp 1271000/410*(46+17) 195300 Less Fixed Selling & Admin Exp 155000+105000 260000 Net Profit 570700 Contribution Format Income Statement Basis Amount ($) Less Sales 1271000 Less Variable COGS 65000+285000-105000 245000 Varible Selling Admin Exp 1271000/410*(46+17) 195300 Less Contribution Margin 830700 Fixed Expenses 155000+105000 260000 Net Profit 570700

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