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 Sales 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 1,204,000 430 50 19 $ 155,000 $ 120,000 $ 80,000 100,000 $ 290,000 Required 1. Prepare a traditional income statement for the quarter ended March 31 2. Prepare a contribution format income statement for the quarter ended March 31 3. What was the contribution margin per unit? Answer is not complete. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare a contribution format income statement for the quarter ended March 31.

Explanation / Answer

Requirement 2 : Prepare contribution format income statement :

3. Contribution margin per unit = 740800/2800 = 265 per unit

Sales 1204000 Less: Variable expenses Cost of goods sold (270000) Variable Selling expenses (140000) Variable administrative exp (53200) (463200) Contribution margin 740800 Fixed selling expenses (155000) Fixed administrative exp (120000) (275000) Net income 465800

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