Question

pter 1 Help Save & Exit Submit Check my work mat 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: 924,000 420 Selling price per pair of skis selling expense per pair of skis 19 140,000 110,000 $ 70,000 s 110,000 $ 315,000 Total fixed selling expense strative expense Total fixed a Beginning merchandise inventory Ending merchandise inventory 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? Complete this question by entering your answers in the tabs below.

Answer 1

Workings: Cost of Goods Sold- Beginning Merchandise inventory+Merchandise Purchases- Ending Merchandise Inventory $70,000+$315,000 - $110,000 -$275,000 ii) No. of units Sold -Total sales revenue/Selling Price per unit $924,000/420 2,200 units i) Selling Expenses Total Fixed Selling Expense + Total Se = $140,000 + (No. of units sold * Variable selling expense per unit) $140,000+(2,200 units $46) = $140,000 + $101,200 -$241,200 iv) Administrative Expenses = Total Fixed Administrative Expense + Total Administrative Variable Expense $110,000+(No. of units sold Variable Administrative expense per unit) $110,000+(2,200 units *$19) $110,000+ $41,800 -$151,800