Question
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Sales $ 1,271,000
Selling price per pair of skis $ 410
Variable selling expense per pair of skis $ 50
Variable administrative expense per pair of skis $ 18
Total fixed selling expense $ 150,000
Total fixed administrative expense $ 125,000
Beginning merchandise inventory $ 65,000
Ending merchandise inventory $ 115,000
Merchandise purchases $ 290,000
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 margin per unit?
(Please write clearly in a piece of paper in a formatted way so that I can see properly.)
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