Question

Hello sir/ma'am. I need help with this particular accounting question please. Thank you for your time!

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: A A A 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 Amount $ 1,230,000 410 46 16 145,000 115,000 65,000 $ 115,000 $ 290,000 A A A 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

Ans. 1	Alpine House, Inc.
	Traditional Income Statement
	For the Quarter Ended March 31
	Particulars	Amount	Amount
	Sales		$1,230,000
	Cost of goods sold		-$240,000
	Gross margin		$990,000
	Selling and Administrative expenses:
	Variable selling expenses	$138,000
	Fixed selling expenses	$145,000
	Variable Administrative expenses	$48,000
	Fixed Administrative expenses	$115,000
	Total selling and administrative expenses		$446,000
	Net operating income		$544,000
Ans. 2	Alpine House, Inc.
	Contribution Format Income Statement
	For the Quarter Ended March 31
	Particulars	Amount	Amount
	Sales		$1,230,000
	Variable expenses:
	Cost of goods sold	$240,000
	Selling expenses	$138,000
	Administrative expenses	$48,000
	Total variable expenses		$426,000
	Contribution margin		$804,000
	Fixed expenses:
	Selling expenses	$145,000
	Administrative expenses	$115,000
	Total fixed expenses		$260,000
	Net operating income		$544,000
Ans. 3	Contribution margin per unit = Contribution margin / Number of units sold
	$804,000 / 3,000
	$268	per unit
	* WORKING NOTES:
	Cost of goods sold = Beginning inventory + Merchandise purchases - Ending inventory
	$65,000 + $290,000 - $115,000
	$240,000
	Number of units sold    =    Sales / Selling price
	$1,230,000 / $410
	3000
	*Variable selling expenses = Number of units sold * Variable selling expenses per pair of skis
	3,000 * $46
	$138,000
	*Variable administrative expenses = Number of units sold * Variable administrative expenses per pair of skis
	3,000 * $16
	$48,000