The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an income...

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The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an income statement for the company's Ski department for a recent quarter: THE ALPINE HOUSE, INC. Income Statement-Ski Department For the Quarter Ended March 31 Sales $560,000 Less: Cost of goods sold 390,000 Gross margin 170,000 Less: Operating expenses: Selling expenses $60,000 Administrative expenses 20,000 Net income 80,000 $ 90,000 On average, skis sell for $800 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 17.5% variable and 82.5% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair. The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an income statement for the company's Ski department for a recent quarter: THE ALPINE HOUSE, INC. Income Statement-Ski Department For the Quarter Ended March 31 Sales $560,000 Less: Cost of goods sold 390,000 Gross margin 170,000 Less: Operating expenses: Selling expenses $60,000 Administrative expenses 20,000 Net income 80,000 $ 90,000 On average, skis sell for $800 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 17.5% variable and 82.5% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair.