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:

0/10 points awarded

Scorod

THE ALPINE BOUSE, INC.

Incone Statement-Ski Department For the Quarter Ended March 31

$560,000

Less: Cost of goods sold

390,000

170,000

Gross margin

Lesa: Operating expenses

$60,000

edlock

Selling expenses Administrative expenses

20,000

80,000

Pint 14

Net income

$ 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.

References

Required:

1. Prepare a contribution margin income statement for the quarter.