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Please answer the Question #2 in details . Thank you The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an
Please answer the Question #2 in details. Thank you
The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an income statement for the company's Ski department for a recent quarter: THE ALPINE HOUSE, INC. Income Statement-Ski Department For the Quarter Ended March 31 Sales Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses $60, eee Administrative expenses 20,000 Net income $560,000 390,000 170,000 80,000 $ 90,000 On average, skis sell for $800 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 17.5% variable and 82.5% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair. Required: 1. Prepare a contribution margin income statement for the quarter. THE ALPINE HOUSE, INC. Contribution Margin Income Statement-Ski Department For the Quarter Ended March 31 Sales $ 560,000 Less: Variable expenses: Cost of goods sold $ 315,000 35,000 3,500 353,500 206,500 Selling expenses Administrative expenses Contribution margin Less: Fixed expenses: Selling expenses Administrative expenses Cost of goods sold 25,000 16,500 75,000 116,500 90,000 Net income $ 2. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits? Contribution margin per pair Answer this
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