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 $ 219,300 Sales in units 215 pairs Selling price per pair of skis $ 1,020 Variable selling expense per pair of skis $ 88 Variable administrative expense per pair of skis $ 15 Total fixed selling expense $ 33,000 Total fixed administrative expense $ 39,000 Beginning merchandise inventory $ 30,000 Ending merchandise inventory $ 40,000 Merchandise purchases $ 115,000 Note: to calculate COGS you will need to use the following equation: Beg. Merch. Inventory + Merch. Purchases End. Merch. Inventory. COGS is a variable expense. 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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