Traditional and Contribution Format Income Statements [LO5]

Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:

Required:
1. Prepare a traditional income statement for the quarter ended May 31.
2. Prepare a contribution format income statement for the quarter ended May 31.
3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (State this figure in a single dollar amount per surfboard.)

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Amount Total sales revenue $800,000 Selling price per surfboard. $400 Variable selling expense per surfboard $50 Variable administrative expense per surfboard $20 Total fixed selling expense $150,000 Total fixed administrative expense $120,000 Merchandise inventory, beginning balance $80,000 Merchandise inventory, ending balance. Merchandise purchases.. $100,000 $320,000