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 Total sales revenue $ 1,188,000 Selling price per pair of skis $ 440 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 17 Total fixed selling expense $ 155,000 Total fixed administrative expense $ 125,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 320,000 Required:
1. Prepare a traditional income statement for the quarter ended March 31.
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2. | Prepare a contribution format income statement for the quarter ended March 31. |
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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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