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Please answer question 3 and 4 asap thnks Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31:
Please answer question 3 and 4 asap thnks
Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Amount $1,156,000 $ 340 $ 50 $ 20 $ 290,000 $ 260,000 $ 95,000 $ 115,000 $ 356,000 Required: 1. Prepare a traditional income statement for the quarter ended December 31. Winter Leisure Traditional Income Statement Quarter ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 460,000 Administrative expenses 328,000 Operating income $ 1,156,000 336,000 820,000 788,000 32,000 $ 2. Prepare a contribution format income statement for the quarter ended December 31. Winter Leisure Contribution Format Income Statement Quarter ended December 31 Sales $ 1,156,000 Variable expenses: Cost of goods sold 336,000 Selling expenses 170,000 Administrative expenses 68,000 $ 574,000 Contribution margin $ 582,000 Fixed expenses: Selling expenses $ 290,000 Administrative expenses 260,000 $ 550,000 Operating income $ 32,000 3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution per snowboard 4. What would operating income be if only 3,000 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,000 snowboards. (Do not round Intermediate calculations. Round your final answer to nearest whole dollar.) Step by Step Solution
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