The Alpine House Inc is a large retaler of snow sks The comp

The Alpine House, Inc, is a large retaler of snow sks. 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 par of skEs 16 Total fixed administrative expense Beginning serchandise inventory Ending merchandise inventory Merchandise purchases 115 000 75.009 285,00 Required: 1 Prepare a traditional income statement for the quarter ended March 31. 2 Prepare a contribution format income statement for the quarte 3. What was the contribution margin per unit? ended March 31 Answer is not complete 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 $ 1.440 000 Sales Cost of goods sold Gross margin Selling and administrative Net operating income Required 2 Prey 1 of Nox

Solution

1. Prepare traditional income statement :

1. Prepare Contribution format income statement :

3. Contribution margin per unit = (980200/3200) =  306 per unit

Sales		1440000
Cost of goods sold
Beginning inventory	75000
Merchandise purchase	285000
Less: Ending inventory	(105000)	(255000)
Gross profit		1185000
Selling expenses (3200*48+130000)		(283600)
Administrative expenses (3200*16+115000)		(166200)
Net income		735200