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: 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 | ||
| Sales | $ | 150,000 |
| Selling price per pair of skis | $ | 750 |
| Variable selling expense per pair of skis | $ | 50 |
| Variable administrative expense per pair of skis | $ | 10 |
| Total fixed selling expense | $ | 20,000 |
| Total fixed administrative expense | $ | 20,000 |
| Beginning merchandise inventory | $ | 30,000 |
| Ending merchandise inventory | $ | 40,000 |
| Merchandise purchases | $ | 100,000 |
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?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
