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: points Amount $1,240,000 400 es us us us us 47 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 eBook Print $ $ $ $ 19 160,000 105,000 70,000 105,000 315,000 References 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

Answer 1

1) Traditional income statement for Quarter ended match: 31 The Alpine House Inc Traditional income statement Darticula918 Sales i 240,000 280,000 (-cost of goods sold (Note: 1) 960,000 Gross profit Selling & adminstrative (-) operate ting expenses (i) selling expenses 305700 'Note:2) 163900 rii administrative expenses (Note 3) 490400 Net income po

Note :- cost of goods sold $70000 Beginning merchandise inventory (+) meachandise purchased = $ 31500 =($105000) (w) Ending merchandise inventory - $ 280000 cost of goods sold Note: 2 Selling expense sold - Sales units $ 1,240,000 { = - 3100 pa Selling price perupit $400 145700 obs variable selling expense, (3100 pairs x $47) fixed selling expenses $160 000 Total $ 305700 plote:3 administrative expenses = $58900 variable administrative expenses (3100X $ 19) fixed administrative expenses & $ 105ooo $ 163,900

$ The Alphine House INC contribution format income statement particulars sales 1,240,000 (-) Vasciable Cost of goods sold 280,000 Gross Contribution maisin 960000 (a) Variable expenses i selling (in administrative 204600 contribution margin 755,400 (a fixed expenses (i) selling (1) administrative 865000 TU5700 58900 1160000 105000 490400 Net income

3) Contribution margin per unit Total contribution units sold = $755, uoo = 3100 pain contrbution maesin per paid - $755400 3100 = $243.68 per pair