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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
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 | $ | 1,080,000 |
Selling price per pair of skis | $ | 400 |
Variable selling expense per pair of skis | $ | 49 |
Variable administrative expense per pair of skis | $ | 18 |
Total fixed selling expense | $ | 145,000 |
Total fixed administrative expense | $ | 105,000 |
Beginning merchandise inventory | $ | 70,000 |
Ending merchandise inventory | $ | 110,000 |
Merchandise purchases | $ | 320,000 |
Required: | |
1. | Prepare a traditional income statement for the quarter ended March 31. |
2. | Prepare a contribution format income statement for the quarter ended March 31. |
3. | What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter? (Round your final answer to nearest whole dollar amount.) |
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