Question

m 1 Review Saved 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 $ 1,040,000 $ 400 $ 45 $ 19 $ 140,000 115,000 $ 70,000 $ 110,000 $ 285,000 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 traditional income statement for the quarter ended March 31. The Alpine House, Inc. Traditional Income Statement Selling and administrative ovnenses HA Moyt

hello I do not understand the material at all, and could really use step by step instructions. please. ?

Answer 1

Traditional income statement

Sales		1040000
Cost of goods sold (70000+285000-110000)		245000
Gross profit		795000
Selling and administrative expense
Selling expense (2600*45+140000)	257000
Administrative expense (2600*19+115000)	164400
Total Selling and administrative expense		421400
Net operating income		373600

Contribution margin income statement

Sales		1040000
Variable expense
Cost of goods sold (70000+285000-110000)	245000
Selling expense	117000
Administrative expense	49400
Total Variable cost		411400
Contribution margin		628600
Fixed expense
Selling expense	140000
Administrative expense	115000
Total Fixed expense		255000
Net operating income		373600

Contribution margin per unit = 628600/2600 = $242