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 $ 1.204.000 430 47 10 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 130,000 125,000 65,000 110,000 300,000 $ 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 Selling and administrative expenses

Answer 1

answer first of all we need calculate Nol units sold Total sales sales priceperunit = 1204000 430 Total no of 2800 units units sold we need to calculate - Cost of goods sold ost of goods - Beginning turcheses - Ending - Sold Inventory = 65,000 + 300000 - 10000 = 255000. The Alpine House Inc Contribution format Income Statement I (in $) sales 1204000 Variable expenses Cost of goods sold 255000 sellingexpenses 131600 Administrētive I 50400 Expens. 437600 Contribution margin 1767000 Alessa Fined expenses 1 Selling expenses 130000 administrit veeup 125000 255000 so Netoperating Incon 512000 I 12 The Alpine House, Inc. Traditional Income statement in $ I Sales $ 1204000 (-) Cost of goods sold 255ovo I Gross Margin 949000 Selling and administrative 761000 Contributim marzen per unit. = Contribution Margie - No of units sold = 274 perunit Selling expenses @ 47 administrative emp@i8 131600. 50400 182000 767000. | Net oferating Income