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 Sales $ 1,012,000 Selling price per pair of skia Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed adninistrative expense 440 16 145,000 110,000 65,000 110,000 315,000 Beginning merchandise inventory Ending merchandise inventory Merchandise purehases Ces 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

Answer 1

Alpine House Inc
Traditional Format Income Statement
Sales		$ 10,12,000.00
Cost of goods sold		$   2,70,000.00
Gross margin		$   7,42,000.00
Selling and administrative expenses:
Selling expenses	$ 2,53,100.00*
Administrative expenses	$ 1,46,800.00**
Total selling and administrative expenses		$   3,99,900.00
Net operating income		$     3,42,100.00

*(2300*47)+145000
**(2300*16)+110000

.

Alpine House Inc
Contribution margin Income statement
Sales		$   10,12,000.00
Less: Variable costs
Direct material used	$   2,70,000.00
Variable selling expenses	$   1,08,100.00
Variable administrative expenses	$       36,800.00
Total Variable cost		$     4,14,900.00
Contribution margin		$     5,97,100.00
Less: Fixed Costs
Fixed selling expenses'	$   1,45,000.00
Fixed administrative expenses	$   1,10,000.00
Total Fixed Costs		$     2,55,000.00
Net Income		$     3,42,100.00

.

Contribution margin

$             255.26

Working

Sales price	$             440.00
Variable material cost (280000/23000)	$             121.74
Variable selling expenses	$               47.00
Variable administrative expenses	$               16.00
Contribution margin (440-121.74-47-16)	$             255.26