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 $ 1,050,000
Selling price per pair of skis $ 420
Variable selling expense per pair of skis $ 48
Variable administrative expense per pair of skis $ 15
Total fixed selling expense $ 135,000
Total fixed administrative expense $ 105,000
Beginning merchandise inventory $ 75,000
Ending merchandise inventory $ 105,000
Merchandise purchases $ 290,000
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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