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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 th quarter ended March 31: Amount Sales Selling price per pain of skis Variable selling expense per pair of skis Variable adeinistrative expense per pain of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory s 1,008,000 420 48 19 S155,000 $ 130,800 s 60,ee0 120,e00 280,000 ook int nding senchandise inventory Merchandise purchases
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The Alpine House, Inc. Traditional Income Statement S 120,000 Cost of goods sold Selling expenses Gross margin Selling and administrative expenses Administrative expenses
The Alpine House, Inc. Contribution Format Income Statement Cost of goods sold Variable expenses Administrative expenses Selling expenses Fixed expenses
Required 1 Required 2Required 3 What was the contribution margin per unit? (Round your final ans Contribution margin per unit < Required 2
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Answer #1

Traditional Income statement and Contribution format income statement are two approaches to calculate net income.

Traditional format do not show cost as fixed or variable whereas in Contribution format statement cost can be categorized into fixed and variable cost.

Contribution margin = Sales - variable cost

Contaubution eom Income Statement Salex (220000) Yastable o8oo Contubuhion 6272oo Sellun 2460

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