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: Anount $ 1,419,000 438 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 140,000 100,000 75.000 100,000 305,000 $ $ 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? 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 ended March 31 The Alpine House, Inc. Traditional Income Statement < Prev 3 of 4 !!! Next >

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer Requirement 1) The Alpha House Inc. Traditional Income Statement Sales Cost of goods sold (75000+305000-100000) Gross Margin Selling and adminstrative expenses Variable selling expenses (3300*47) Fixed selling expenses Variable adminstrative expenses (3300*16) Fixed adminstrative expenses Net Operating income 1419000 280000 1139000 155100 140000 52800 100000 6911001

1419000 931100 5 Requirement 2 The Alpha House Inc. Contribution Format Income Statement 8 Sales 9 Variable expenses 0 Variable cost of goods sold (75000+305000-1000 280000 -1 Variable selling expenses (3300*47) 155100 2 Variable adminstrative expenses (3300*16) 52800 3 Contribution Margin 4 Fixed Expenses 5 Fixed selling expenses 140000 6 Fixed adminstrative expenses 100000 -7 Net Operating income 9 Part 3) 0 Contribution margin per unit 1 = total contribution margin / No. of units sold 2 = 931100/3300 3 = $ 282 per unit 4 Thus the correct answer is $ 282 per unit 691100 6 Note 7 No. of units sold 8 = sales / selling price per unit 9 = 1419000/430 0 = 3300 Units