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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 | $ 1,188,000 |
Selling price per pair of skis | $ 440 |
Variable selling expense per pair of skis | $ 49 |
Variable administrative expense per pair of skis | $ 15 |
Total fixed selling expense | $ 140,000 |
Total fixed administrative expense | $ 110,000 |
Beginning merchandise inventory | $ 75,000 |
Ending merchandise inventory | $ 100,000 |
Merchandise purchases | $ 315,000 |
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
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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