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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: $ 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 $ 1,394,000 410 $ 49 18 150,000 $ 130,000 $ 80,000 $ 100,000 $ 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 contribution format income statement for the quarter ended March 31.... The Alpine House, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses:

Answer 1

Solution unit sold-1394000/410 3400 Part 1: The Alpine House, Inc Traditional income statement sales cost of goods sold=80000+300000-1000 00 Gross margin sell ling and administrative expense selling expense-3400*49+150000 administrative expense 3400*18+130000 1394000 280000 1114000 316600 191200 507800 Net operating income 606200 Part 2: The Alpine House, Inc Contribution format income statement sales 1394000 Variable expen se : cost of goods sold 280000 selling expense=3400*49 administrative expense-3400*18 166600 61200 507800 Contribution margin 886200 Fixed expense: selling expense administrative expense 150000 130000 280000 Net operating income 606200 Part 3: Total CM /units sold 886200 3400 CM per unit 260.65