E6-10 Haaki Shop, Inc., is a large retailer of water sports equipment. An income statement for the company's surfboard department for the most recent quarter is presented below: THE HAAKI SHOP, INC. Income Statement-Surfboard Department For the Quarter Ended May 31 Sales Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses Net income $250,000 160,000 $800,000 300,000 500,000 410,000 $ 90,000 The surfboards sell, on the average, for $400 each. The department's variable selling expenses are $50 per surfboard sold. The remaining selling expenses are fixed. The admin- istrative expenses are 25% variable and 75% fixed. The company purchases its surfboards from a supplier at a cost of $150 per surfboard. 1. Prepare an income statement for the quarter using the contribution approach. 2. What was the contribution toward fixed expenses and profits from each surfboard sold during the quarter? (State this figure in a single dollar amount per surfboard.)

E6-10 Haaki Shop, Inc., is a large retailer of water sports equipment. An income statement for the company's surfboard department for the most recent quarter is presented below: THE HAAKI SHOP, INC. Income Statement-Surfboard Department For the Quarter Ended May 31 Sales. $800,000 Less cost of goods sold 300,000 Gross margin... 500,000 Less operating expenses: Selling expenses...... Administrative expenses s $250,000 160,000 410,000 Net income $ 90,000 The surfboards sell, on the average, for $400 each. The department's variable selling expenses are $50 per surfboard sold. The remaining selling expenses are fixed. The admin- istrative expenses are 25% variable and 75% fixed. The company purchases its surfboards from a supplier at a cost of $150 per surfboard. 1. Prepare an income statement for the quarter using the contribution approach. 2. What was the contribution toward fixed expenses and profits from cach surfboard sold during the quarter? (State this figure in a single dollar amount per surfboard.)