newc Chegg Study Guided Solutions and Study Help Cheggcom

newc Chegg Study | Guided Solutions and Study Help | Chegg.com CH1 HW 16ed Saved Help Save & Exit Submit Check my work 0 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 6 points Amount 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 $150,000 750 50 10 $ 20,000 $ 20,000 $ 30,000 $ 40,000 $ 100,000 eBook Hint Print 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? tribution margin per unit Graw Hill Prev 1° of 11 Next>

Solution

Answer 1. The Alpine House Inc. Traditional Income Statement Sales    150,000.00 Cost of Goods Sold      90,000.00 Gross Margin      60,000.00 Selling & Administrative Expenses: Selling Expenses - $20,000 + (200 Nos X $50)      30,000.00 Administrative Expenses - $20,000 + (200 Nos X $10)      22,000.00 Total Selling & Administrative Expenses      52,000.00 Net Operating Income        8,000.00 Cost of Goods Sold Beginning Merchandise Inventory      30,000.00 Add: Merchandise Purchases    100,000.00 Cost of Goods Available for Sale    130,000.00 Less: Ending Merchandise Inventory      40,000.00 Cost of Goods Sold      90,000.00 Answer 2. The Alpine House Inc. Contribution Format Income Statement Sales    150,000.00 Less: Variable Costs: Cost of Goods Sold      90,000.00 Selling Expenses - 200 Nos X $50      10,000.00 Administrative Expenses - 200 Nos X $10        2,000.00 Total Variable Costs    102,000.00 Contribution Margin      48,000.00 Less: Fixed Costs Selling Expenses      20,000.00 Administrative Expenses      20,000.00 Total Fixed Costs      40,000.00 Net Operating Income        8,000.00 Answer 3. Contribution Margin per Unit = Total Contribution / No. of Units Sold Contribution Margin per Unit = $48,000 / 200 Units Contribution Margin per Unit = $240 per Unit