Exercise 2-13 Traditional and Contribution Format Income Statements [LO2-6] 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 Total sales revenue Selling price per pair of skis Variable selling expense per pair of skis $ Variable administrative expense per pair $1,240,000 $400 50 20 $ 150,000 Total fixed selling expense Total fixed administrative expense$ 110,000 Beginning merchandise inventory $70,000 Ending merchandise inventory Merchandise purchases $110,000 $ 305,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Inc. Traditional Income Statement Sales Beginning merchandise inventory Gross margin $ 1,240,000 70,000 305,000 Selling and administrative expenses: Selling expenses Fixed manufacturing overhead 155,000 150,000 62,000 (100,000) 267,000 Net operating income $498,000 2. Prepare a contribution format income statement for the quarter ended March 31 The Alpine House, Inc Contribution Format Income Statement Sales $1,240,000 Variable expenses Cost of goods sold Selling expenses Administrative expenses 265,000 155,000 62,000 482,000 758,000 Fixed expenses: 150,000 Selling expenses Administrative expenses 110,000 Ending merchandise inventory- Net operating income 260,000 $ 498,000