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: Amount Sales Selling price per pair of 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 s1,276,000 440 47 20 $130,000 $ 120,000 65,000 105,000 $ 290,000 skis 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 1Required 2 Required 3 Prepare a traditional income statement for the quarter ended March 31 The Alpine House, Inc. Traditional Income Statement Selling and administrative expenses:

Answer 1

Please find below the answer -

Answer 1_
	Unit sold = 1276000/440	2900
	The Alpine House Inc.
		Traditional Income Statement
		Sales		1276000
	Less:	Cost of Goods Sold		250000
		Gross Margin		1026000
	Less:	Selling and Administrative Expenses:
		Selling Expenses	266300
		Administrative Expenses	178000	444300
		Net Operating Income		581700
		Working
		Cost of goods sold = Beginning inventory + Purchase - Closing inventory			250000
			=65000+290000-105000
		Selling Expenses =	=130000+2900*47	266300
		Administrative Expenses =	=120000+2900*20	178000
Answer 2_
	The Alpine House Inc.
		Contribution Format Income Statement
		Sales		1276000
	Less:	Variable Expenses:
		Cost of Goods Sold	250000
		Selling Expenses	136300
		Administrative Expenses	58000	444300
		Contribution Margin		831700
	Less:	Fixed Expenses:
		Selling Expenses	130000
		Administrative Expenses	120000	250000
		Net Operating Income		581700
Answer 3_
		Contribution margin per unit = Total contribution / Number of unit		=831700/2900
				287