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 | |
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Sales | $ 966,000 |
Selling price per pair of skis | $ 420 |
Variable selling expense per pair of skis | $ 49 |
Variable administrative expense per pair of skis | $ 19 |
Total fixed selling expense | $ 150,000 |
Total fixed administrative expense | $ 120,000 |
Beginning merchandise inventory | $ 65,000 |
Ending merchandise inventory | $ 115,000 |
Merchandise purchases | $ 320,000 |
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
Prepare a traditional income statement for the quarter ended March 31.
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2. Prepare a contribution format income statement for the quarter ended March 31.
Prepare a contribution format income statement for the quarter ended March 31.
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3. What was the contribution margin per unit?
What was the contribution margin per unit? (Round your final answer to nearest whole dollar.)
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