The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Amount | ||
Sales | $ | 1,118,000 |
Selling price per pair of skis | $ | 430 |
Variable selling expense per pair of skis | $ | 47 |
Variable administrative expense per pair of skis | $ | 16 |
Total fixed selling expense | $ | 145,000 |
Total fixed administrative expense | $ | 130,000 |
Beginning merchandise inventory | $ | 60,000 |
Ending merchandise inventory | $ | 110,000 |
Merchandise purchases | $ | 310,000 |
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
Prepare a traditional income statement for the quarter ended March 31.
|
2. Prepare a contribution format income statement for the quarter ended March 31.
Prepare a contribution format income statement for the quarter ended March 31.
|
3. What was the contribution margin per unit?
Units sold = Sales / Selling price per pair of skis = 1118000 / 430 = | 2600 |
Beginning merchandise inventory | 60000 |
(+) Merchandise purchases | 310000 |
(-) Ending merchandise inventory | 110000 |
Cost of goods sold | 260000 |
Required 1 : | ||
The Alpine House, Inc. | ||
Traditional Income Statement | ||
Sales | 1118000 | |
Cost of goods sold | 260000 | |
Gross margin | 858000 | |
Selling and administrative expenses: | ||
Selling expense [ ( 2600*47 ) + 145000 ] | 267200 | |
Administrative expenses [ ( 2600*16 ) + 130000 ] | 171600 | |
438800 | ||
Net operating income | 419200 |
Required 2 : | ||
The Alpine House, Inc. | ||
Contribution format Income Statement | ||
Sales | 1118000 | |
Variable expenses : | ||
Cost of goods sold | 260000 | |
Selling expenses ( 2600*47 ) | 122200 | |
Administrative expenses ( 2600*16 ) | 41600 | |
423800 | ||
Contribution margin | 694200 | |
Fixed expenses : | ||
Selling expense | 145000 | |
Administrative expense | 130000 | |
275000 | ||
Net operating income | 419200 | |
Required 3 : | |
Contribution of each pair of skis was = Total contribution margin / Units sold = 694200 / 2600 = | 267 |
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 150,000 Selling price per pair of skis $ 750 Variable selling expense per pair of skis $ 50 Variable administrative expense per pair of skis $ 10 Total fixed selling expense $ 20,000 Total fixed administrative expense $ 20,000 Beginning merchandise inventory $ 30,000 Ending merchandise inventory $ 40,000 Merchandise purchases $ 100,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,320,000 Selling price per pair of skis $ 440 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 18 Total fixed selling expense $ 140,000 Total fixed administrative expense $ 130,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 310,000...
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 $ 1,364,000 440 50 18 155,000 $ 105,000 $ 80,000 $ 115,000 $ 300,000 Required: 1. Prepare a...
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 $ 1,218,000 $ 420 $ 45 16 $ 135,000 $ 110,000 $ 65,000 115,000 $ 290,000 Required: 1....
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount $ 1,012,000 440 46 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 $ $ $ $ $ 16 140,000 115,000 75,000 105,000 285,000 Required: 1. Prepare...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Total sales revenue 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 $ 1,075,000 $ 430 $ 45 $ 17 $ 135,000 $ 120,000 $ 75,000 $ 100,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount $ 1.204.000 430 47 10 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 130,000 125,000 65,000 110,000 300,000 $ Required: 1. Prepare a traditional income statement...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount ৪60, 000 Sales Selling price per pair of skis Variable selling expense per pair of skis Variable a dministrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 430 17 150,000 %24 125,000 75,000 115,000 310,000 Required: 1. Prepare a traditional income statement...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount 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 1,134,000 420 50 18 145, 000 105,000 $60,000 110,000 305, 000 Required 1. Prepare a traditional income statement...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue 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 $ 150,000 750 S 50 S 10 $ 20,000 $ 20,000 $ 30,000 $ 40,000 $...