Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

The Alpine House, Inc.
Traditional Income Statement
Selling and administrative expenses:

2.

Prepare a contribution format income statement for the quarter ended March 31.

The Alpine House, Inc.
Contribution Format Income Statement
Variable expenses:
Fixed expenses:

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.)

Contribution of each pair of skis was

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Reporting And Analysis

Authors: Earl K. Stice, James D. Stice

7th Edition

0324227329, 978-0324227321

More Books

Students also viewed these Accounting questions