The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: AmountSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000Selling price per pair of skis . . . . . . . . . . . . . . . . . . . . . $750Variable selling expense per pair of skis . . . . . . . . . . $50Variable administrative expense per pair of skis . . . $10Total fixed selling expense . . . . . . . . . . . . . . . . . . . . . . $20,000Total fixed administrative expense . . . . . . . . . . . . . . . $20,000Beginning merchandise inventory . . . . . . . . . . . . . . . . $30,000Ending merchandise inventory . . . . . . . . . . . . . . . . . . $40,000Merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . $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?
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Amount
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
Selling price per pair of skis . . . . . . . . . . . . . . . . . . . . . $750
Variable selling expense per pair of skis . . . . . . . . . . $50
Variable administrative expense per pair of skis . . . $10
Total fixed selling expense . . . . . . . . . . . . . . . . . . . . . . $20,000
Total fixed administrative expense . . . . . . . . . . . . . . . $20,000
Beginning merchandise inventory . . . . . . . . . . . . . . . . $30,000
Ending merchandise inventory . . . . . . . . . . . . . . . . . . $40,000
Merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . $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?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
