Exercise 1-15 Traditional and Contribution Format Income Statements [LO1-6]

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

		Amount
Sales	$	1,100,000
Selling price per pair of skis	$	440
Variable selling expense per pair of skis	$	46
Variable administrative expense per pair of skis	$	16
Total fixed selling expense	$	150,000
Total fixed administrative expense	$	125,000
Beginning merchandise inventory	$	60,000
Ending merchandise inventory	$	105,000
Merchandise purchases	$	285,000

2.	Prepare a contribution format income statement for the quarter ended March 31.

The Alpine House, Inc.
Contribution Format Income Statement
Variable expenses:
Fixed expenses:

3. Contribution margin per unit