Question

Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31:
Total sales revenue
Selling price per snowboard
Variable selling expense per snowboard
Variable administrative expense per snowboard
Total fixed selling expense
Total fixed administrative expense
Merchandise inventory, beginning balance
Merchandise inventory, ending balance
Merchandise purchases
Amount
$1,444,000
$
380
65
20
$
$
370,000
340,000
98,000
$
$
118,000
362,000
Required:
1. Prepare a traditional income statement for the quarter ended December 31.
Winter Leisure
Traditional Income Statement
Quarter ended December 31
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
$ 1 444 000
1.444.000
2.Prepare a contribution format income statement for the quarter ended December 31.
Winter Leisure
Contribution Format Income Statement
Quarter ended December 31
Variable expenses:
Fixed expenses:
3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round
intermediate calculations. Round your final answer to nearest whole dollar.)
Contribulion
per snowboard
4. What would operating income be if only 3,300 snowboards were sold in a quarter? You can assume no change to fixed expenses
will occur if sales decline to 3,300 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole
dollar.)