Question

2 The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: $ $ 42.5 points 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 943,000 410 49 18 145,000 120,000 70,000 110,000 280,000 8 00:53:18 Print 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 $ 943,000 Sales Purchases 290,000 Selling and administrative expenses:

Answer 1

1.

Sales		$943,000
Cost of goods sold		$240,000
Gross Profit		$703,000
Selling and administrative expense:
Variable selling expense	$112,700
Variable administrative expense	$41,400
Total fixed selling expense	$145,000
Total fixed administrative expense	$120,000
Net income		$283,900

2.

Sales		$943,000
Variable expense:
Cost of goods sold	$240,000
Variable selling expense	$112,700
Variable administrative expense	$41,400
Contribution margin		$548,900
Fixed expense:
Total fixed selling expense	$145,000
Total fixed administrative expense	$120,000
Net income		$283,900

3.

Units sold:

= $943,000 / $410

= 2,300

Contribution margin per unit:

= $548,900 / 2,300

= $238.65