Question
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Amount | |
---|---|
Sales | $ 861,000 |
Selling price per pair of skis | $ 410 |
Variable selling expense per pair of skis | $ 47 |
Variable administrative expense per pair of skis | $ 20 |
Total fixed selling expense | $ 135,000 |
Total fixed administrative expense | $ 105,000 |
Beginning merchandise inventory | $ 75,000 |
Ending merchandise inventory | $ 115,000 |
Merchandise purchases | $ 315,000 |
Required (Hint: there are more lines than you need in the tables below - some lines will remain blank):
1. Prepare a traditional income statement for the quarter ended March 31. (Hints: (1) you will need to calculate the number of units from the sales information above; (2) if you don't remember how to calculate Cost of Goods Sold from the information above, see p. 43 in your book.)
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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