Crazy Canucks is a small, family$-$owned retailer specializing in alpine ski and snowboard equipment located in Squamish, B$.$C$.$ An

income statement for the ski department's most recent month is shown below.

Skis sell, on average, for $$1,500$ per pair. Variable selling expenses are $$160$ per pair of skis sold. The remaining selling expenses are

fixed. The administrative expenses are $20\%$ variable and $80\%$ fixed. The company purchases its skis from several suppliers at an

average cost of $$900$ per pair.

Requlred:

Prepare an income statement for the month using the contribution approach.

For every pair of skis sold during January, what was the contribution toward covering fixed expenses and toward earning profits?

Contribution margin

What would the total contribution margin be in a month where $160$ pairs of skis were sold?