The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,462,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 47 Variable administrative expense per pair of skis $ 20 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 295,000 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, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,462,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 47 Variable administrative expense per pair of skis $ 20 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 295,000 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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Question
Exercise 1-15 (Algo) Traditional and Contribution Format Income Statements [LO1-6]
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
| Amount | |
|---|---|
| Sales | $ 1,462,000 |
| Selling price per pair of skis | $ 430 |
| Variable selling expense per pair of skis | $ 47 |
| Variable administrative expense per pair of skis | $ 20 |
| Total fixed selling expense | $ 135,000 |
| Total fixed administrative expense | $ 100,000 |
| Beginning merchandise inventory | $ 70,000 |
| Ending merchandise inventory | $ 110,000 |
| Merchandise purchases | $ 295,000 |
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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