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	$ 1,032,000
Selling price per pair of skis	$ 430
Variable selling expense per pair of skis	$ 50
Variable administrative expense per pair of skis	$ 19
Total fixed selling expense	$ 140,000
Total fixed administrative expense	$ 125,000
Beginning merchandise inventory	$ 65,000
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?

The Alpine House, Incorporated
Traditional Income Statement
Salesselected answer correct		$1,032,000selected answer correct
Cost of goods soldselected answer correct		280,000selected answer correct
Gross marginselected answer correct		752,000selected answer correct
Selling and administrative expenses:
not attempted	not attempted
not attempted	not attempted
Administrative expensesselected answer correct	170,600selected answer correct
Selling expensesselected answer correct	260,000selected answer correct	430,600
not attempted		$321,400selected answer correct

The Alpine House, Incorporated
Contribution Format Income Statement
Salesselected answer correct		$1,032,000selected answer correct
Variable expenses:
not attempted	not attempted
not attempted	not attempted
Cost of goods soldselected answer correct	(280,000)selected answer correct
Administrative expensesselected answer correct	(45,600)selected answer correct
Selling expensesselected answer correct	(120,000)selected answer correct	(445,600)not attempted
not attempted		586,400selected answer correct
Fixed expenses:
not attempted	not attempted
not attempted	not attempted
Administrative expensesselected answer correct	(125,000)selected answer correct
Selling expensesselected answer correct	(140,000)selected answer correct	(265,000)
not attempted		$321,400