Question

Check my work 7 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 nerchandise inventory Merchandise purchases $1,353,000 410 45 1 8 130,000 $ 105,000 $70,000 105,000 315,000 points eBook Hint 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 1Required 2 Required 3 Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Inc. Sta < Prev 7of 71 Next >

Answer 1

	Number of Pairs = Sales / Sales price per pairs
	Number of Pairs = $ 1,353,000 / 410 =	3,300	Pairs
	Answer = 1)
	Tradittionala Income statement
	Sales		$      13,53,000
	Less: Expenses
	Cost of Goods Sold
	Opening Stock of inventory	$            70,000
	Add: Purchases	$        3,15,000
	Less: Ending merchandise envenotory	$        1,05,000	$        2,80,000
	Variable administrative expenses ( $ 18 X 3,300)		59400
	Fixed Administrative expenses		$        1,05,000
	Variable Selling expenses ($ 45 X 3,300)		148500
	Fixed Selling expenses		$        1,30,000
	Total Expenses		$        7,22,900
	Net Income		$        6,30,100
	Contribution Income Statement
	Sales		$      13,53,000
	Less: Expenses
	Cost of Goods Sold
	Opening Stock of inventory	$            70,000
	Add: Purchases	$        3,15,000
	Less: Ending merchandise envenotory	$        1,05,000	$        2,80,000
	Gross Contribution Margin		$      10,73,000
	Less: Vaiable Expenses
	Variable administrative expenses ( $ 18 X 3,300)		$            59,400
	Variable Selling expenses ($ 45 X 3,300)		$        1,48,500
	Contribution Margin		$        8,65,100
	Fixed Expenses
	Fixed Administrative expenses		$        1,05,000
	Fixed Selling expenses		$        1,30,000
	Net Income		$        6,30,100
	Answer = 3)
	Contribution Margin Per Unit = Contribution / Total Units of Sales
	Contribution Margin Per Unit =
	Contribution Margin =	$        8,65,100
	Divide By	"/" By
	Number of units of Sales	3,300 Pairs
	Contribution Margin Per Unit =	$            262.15	Per Unit