The Alpine House, Inc., is a large retailer of winter sports equipment. An income statement for the companys Ski Department for a recent quarter is presented below:

Skis sell, on the average, for $750 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 20% variable and 80% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair.

Required:

• 1. Prepare a contribution format income statement for the quarter.
• 2. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits?