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 Total sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $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: Prepare a traditional income statement for the quarter ended March 31. Prepare a contribution format income statement for the quarter ended March 31. What was the contribution toward fixed expenses and profits for each pair of skis sold during
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 Total sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $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: Prepare a traditional income statement for the quarter ended March 31. Prepare a contribution format income statement for the quarter ended March 31. What was the contribution toward fixed expenses and profits for each pair of skis sold during
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Total sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $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:
- Prepare a traditional income statement for the quarter ended March 31.
- Prepare a contribution format income statement for the quarter ended March 31.
- What was the contribution toward fixed expenses and profits for each pair of skis sold during
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Step 1 Difference between traditional income statement and contribution format income statement
VIEWStep 2 Traditional income statement for the quarter ended March 31
VIEWStep 3 Contribution format income statement for the quarter ended March 31
VIEWStep 4 Calculation of contribution margin per unit to cover fixed costs and profit
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