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 1,260, 000 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 %24 450 %24 17 155,000 115,000 60,000 100, 000 320,000 %24 %24 Requlred: 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 1,260, 000 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 %24 450 %24 17 155,000 115,000 60,000 100, 000 320,000 %24 %24 Requlred: 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?

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

I don’t understand the formulas for these, especially selling expenses and administrative expenses. How do I calculate price per unit?

The Alpine House, Inc.
Traditional Income Statement
Sales
1,260,000
280,000
24
Cost of goods sold
Gross margin
980,000
Selling and administrative expenses:
Selling expenses
$4
136.150
Administrative expenses
1.815,000
1,951,150
5,750,000
Net operating income
Required 2

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
24
%24
1,260, 000
450
47
17
155,000
115, 000
60, 000
100,000
320, 000
Requlred:
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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a traditional income statement for the quarter ended March 31.
The Alpine House, Inc.
Traditional Income Statement
Sales
1 260.0001
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