Question

i cannot figure this out

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: Anount $ 1,232,000 24 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 26 440 49 24 18 150,000 24 24 130,000 75,000 105,000 300,000 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? 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.

Answer 1

1)
The Alpine House, Inc.
Traditional Income Statement
Sales Revenue		$1,232,000
Less: Cost of Goods Sold:
Beginning merchandise inventory	$75,000
Add: Merchandise Purchases	$300,000
Less: Ending merchandise inventory	($105,000)
Cost of Goods Sold		$270,000
Gross Margin		$962,000
Less: Selling and Administrative Expenses:
Selling expenses ($150,000 + [2,800 units * $49 per unit])	$287,200
Administrative expenses ($130,000 + [2,800 units * $8 per unit])	$152,400
Total Selling and Administrative Expenses		$439,600
Net Operating Income		$522,400
Number of units sold ($1,232,000/$440 per unit = 2,800 units)
2)
The Alpine House, Inc.
Contribution Format Income Statement
Sales Revenue		$1,232,000
Less: Variable Expenses:
Cost of Goods Sold	$270,000
Selling expenses (2,800 units * $49 per unit)	$137,200
Administrative Expenses (2,800 units * $8 per unit)	$22,400
Total Variable Expenses		$429,600
Contribution Margin		$802,400
Less: Fixed Costs:
Selling expenses	$150,000
Administrative Expenses	$130,000
Total Fixed Costs		$280,000
Net Operating Income		$522,400
3)
Contribution Margin (a)	$802,400
Number of units sold (b)	2,800
Contribution Margin Per Unit (a/b)	$286.57