Question

help plzzz

Exercise 1-15 Traditional and Contribution Format Income Statements [LO1-6] The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: is as Amount $1,320,000 440 $ 46 es 17 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 es $ $ $ $ $ 155,000 105,000 60,000 110,000 295,000 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 Required Required Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses: < Required 1 Required 3 >

Answer 1

The Alpine House, Inc.
Contribution Format Income Statement
Sales		$1320000
Variable expenses:
Cost of goods sold	245000
Variable selling expense (3000*$46)	138000
Variable administrative expense (3000*$17)	51000
Total variable expenses		434000
Contribution margin		886000
Fixed expenses:
Fixed selling expense	155000
Fixed administrative expense	105000
Total fixed expense		260000
Net operating income		$626000

Variable cost of goods sold= Beginning merchandise inventory+Merchandise purchases-Ending merchandise inventory

= $60000+295000-110000= $245000

Sales units= Total sales/Selling price per unit

= $1320000/440= 3000 units