The Alpine House, Inc, is a large retaler of snow sks. The company assembled the

Question

The Alpine House, Inc, is a large retaler of snow sks. The company assembled the information shown below for the quarter ended March 31 Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per par of skEs 16 Total fixed administrative expense Beginning serchandise inventory Ending merchandise inventory Merchandise purchases 115 000 75.009 285,00 Required: 1 Prepare a traditional income statement for the quarter ended March 31. 2 Prepare a contribution format income statement for the quarte 3. What was the contribution margin per unit? ended March 31 Answer is not complete Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a traditional income statement for the quarter $ 1.440 000 Sales Cost of goods sold Gross margin Selling and administrative Net operating income Required 2 Prey 1 of Nox

Explanation / Answer

1. Prepare traditional income statement :

1. Prepare Contribution format income statement :

3. Contribution margin per unit = (980200/3200) =  306 per unit

Sales 1440000 Cost of goods sold Beginning inventory 75000 Merchandise purchase 285000 Less: Ending inventory (105000) (255000) Gross profit 1185000 Selling expenses (3200*48+130000) (283600) Administrative expenses (3200*16+115000) (166200) Net income 735200

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