Check my work The Alpine House Inc is a large retailer of sn

Check my work The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: 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 $1,302,000 420 49 19 145,000 $130,000 $65,000 $ 105,000 $305,000 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. 28 w

Solution

Solution: 1. The Alpine House, Inc. Traditional Income Statement Sales 1,302,000 Cost of goods sold 265,000 Gross margin 1,037,000 Selling and administrative expenses: Selling expenses 296,900 Administrative expenses 188,900 Total Selling and administrative expenses: 485,800 Net operating income 551,200 Working Notes: The Alpine House, Inc. Traditional Income Statement Sales 1,302,000 a Cost of goods sold 265,000 b [Beginning merchandise inventory + Merchandise purchases - Ending merchandise inventory ] [65,000 + 305,000 - 105,000 = 265,000] Gross margin 1,037,000 c=a-b Selling and administrative expenses: Selling expenses 296,900 d [fixed selling exp. + variable selling exp. Per unit x total sales units ] [145,000 + (3,100 x $49) = $296,900] Administrative expenses 188,900 e [fixed admin. exp. + variable admin. exp. Per unit x total sales units ] [130,000 + (3,100 x $19) = $188,900] Net operating income 551,200 f=c-d-e Notes: Sales units = total sales value / selling price per pair of skis =1,302,000 / 420 =3,100 pair 2. The Alpine House, Inc. Contribution Format Income Statement Sales 1,302,000 Variable expenses: Cost of goods sold 265,000 Selling expenses 151,900 Administrative expenses 58,900 475,800 Contribution margin 826,200 Fixed expenses: Selling expenses 145,000 Administrative expenses 130,000 275,000 Net operating income 551,200 Working Notes: The Alpine House, Inc. Contribution Format Income Statement Sales 1,302,000 a Variable expenses: b Cost of goods sold 265,000 [Beginning merchandise inventory + Merchandise purchases - Ending merchandise inventory ] [65,000 + 305,000 - 105,000 = 265,000] Selling expenses 151,900 c [variable selling exp. Per unit x total sales units ] [49 x 3,100 = 151,900 ] Administrative expenses 58,900 d [variable admin exp. Per unit x total sales units ] [19 x 3,100 = 58,900 ] 475,800 e=b+c+d Contribution margin 826,200 f=a-e Fixed expenses: Selling expenses 145,000 g Administrative expenses 130,000 h 275,000 i=g+h Net operating income 551,200 j=f-i Sales units = total sales value / selling price per pair of skis =1,302,000 / 420 =3,100 pair 3. Contribution margin per unit = 266.52    if in whole number 267 Working Notes: Contribution margin per unit =Total contribution margin/ Total of sales unit (from above calculation) = 826,200/3100 = 266.516129 266.52 or 267 Notes: The portion of question you have share there is no details of decimal in answer required , if question required contribution margin per unit in whole number answer will 267 per unit if it is silent then it appropriate to answer is in two decimal as given above. Please feel free to ask if anything about above solution in comment section of the question.