EXERCISE 1-15 Traditional and Contribution Format Income Statements L01-6The Alpine House, Inc., is a large retailer of snow skis. The company assembled the informationshown below for the quarter ended March 31:Sales..Selling price per pair of skis.Variable selling expense per pair of skisVariable administrative expense per pair of skisTotal fixed selling expense..Total fixed administrative expenseBeginning merchandise inventory.Ending merchandise inventoryMerchandise purchases.......Amount$150,000$750$50$10$20,000$20,000$30,000$40,000$100,000Required: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?

Units sold = Sales / Selling price per pair of skis = 150000 / 750 200 Beginning…

Answered: EXERCISE 1-15 Traditional and…

Business

Accounting

EXERCISE 1-15 Traditional and Contribution Format Income Statements L01-6 IT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

EXERCISE 1-15 Traditional and Contribution Format Income Statements L01-6
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information
shown below for the quarter ended March 31:
Sales..
Selling price per pair of skis.
Variable selling expense per pair of skis
Variable administrative expense per pair of skis
Total fixed selling expense..
Total fixed administrative expense
Beginning merchandise inventory.
Ending merchandise inventory
Merchandise purchases
.....
..
Amount
$150,000
$750
$50
$10
$20,000
$20,000
$30,000
$40,000
$100,000
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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