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 $ 1,419,000 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 $ 145,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 60,000 Ending merchandise inventory $ 105,000 Merchandise purchases $ 310,000 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 $ 1,419,000 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 $ 145,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 60,000 Ending merchandise inventory $ 105,000 Merchandise purchases $ 310,000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 1-15 Traditional and Contribution Format Income Statements [LO1-6]
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
| Amount | ||
| Sales | $ | 1,419,000 |
| 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 | $ | 145,000 |
| Total fixed administrative expense | $ | 100,000 |
| Beginning merchandise inventory | $ | 60,000 |
| Ending merchandise inventory | $ | 105,000 |
| Merchandise purchases | $ | 310,000 |
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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