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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 A 1,125,000 Selling price per pair of skis pair of skis A 450 Variable selling expense per pair of skis 50 Variable administrative expense per pair of skis 16 A Total fixed selling expense 140,000 A Total fixed administrative expense expense 130,000 Beginning merchandise inventory 65,000 Ending merchandise inventory 105,000 Merchandise purchases 290,000 A 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
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