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	$	1,188,000
Selling price per pair of skis	$	440
Variable selling expense per pair of skis	$	47
Variable administrative expense per pair of skis	$	15
Total fixed selling expense	$	155,000
Total fixed administrative expense	$	100,000
Beginning merchandise inventory	$	75,000
Ending merchandise inventory	$	115,000
Merchandise purchases	$	305,000

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

The Alpine House, Inc.
Traditional Income Statement
Sales		$1,188,000
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
		0
Net operating income

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

The Alpine House, Inc.
Contribution Format Income Statement
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative expenses
		0
Contribution margin
Fixed expenses:
Selling expenses
Administrative expenses
		0
Net operating income

3. What was the contribution margin per unit?