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Could someone answer for me thai question . Thank you in advance EXERCISE 3-4 Contribution Format Income Statement [104] The Alpine House, Inc., is a
Could someone answer for me thai question . Thank you in advance
EXERCISE 3-4 Contribution Format Income Statement [104] The Alpine House, Inc., is a large retailer of winter sports equipment. An income statement for the com- pany's Ski Department for a recent quarter is presented below: The Alpine House, Inc. Income Statement-Ski Department For the Quarter Ended March 31 Sales... Cost of goods sold. Gross margin. Selling and administrative expenses: Selling expenses..... $30,000 Administrative expenses 10,000 Net operating income $150,000 90,000 60,000 40,000 $ 20,000 Skis sell, on the average, for $750 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 20% variable and 80% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair Required: 1. Prepare a contribution format income statement for the quarter. 2. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits Step by Step Solution
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