Question

The Alpine House, Inc., is a large retailer of snow skls. The company assembled the information shown below for the quarter ended March 31: Amount 989,000 430 Sales Selling price per pair of stis Variable selling expense per pair of stis Variable administrative expense per pair of stis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 140,000 105,000 75,000 100,000 320,000 $ 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 What was the contribution margin per unit? (Round your final answer to nearest whole dollar.) Contribution margin per unit < Required 2 Required 3)

Answer 1

Requirement: 1 The Alpine House, Inc. Traditional Income statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 989000 295000 694000 248100 144100 Total selling and administrative expenses Net operating income 392200 301800

989000 Requirement: 2 The Alpine House, Inc. Contribution format Income statement Sales Variable Expenses: Cost of goods sold Selling expenses (units sold * Selling price per unit) administrative expenses Total variable expenses Contribution margin Fixed Expenses: Selling expenses Administrative expenses Total Fixed expenses Net Operating Income 295000 108100 39100 442200 546800 140000 105000 245000) 301800 Requirement: 3 Contribution towards fixed expenses per unit = Total contribution / Number of units sold Total contribution 546800 Number of units sold 2300 Contribution margin per unit 238