The Alpine House Inc Is a large retaller of snow skis The co

The Alpine House, Inc., Is a large retaller of snow skis. 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 pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $ 840,000 400 49 19 $ 150,000 120,000 s65,000 $120,000 s 285,000 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. Traditional Income Statement Selling and administrative expenses:

Solution

Answer = 1 CALCULAATION OF NUMBER OF UNITS SOLD Sales = $     8,40,000 Divide by \"/\" By Unit Selling price = $               400 Number of units sold = 2100 Units THE ALPINE HOUSE , INCORPORATION TRADITIONAL INCOME STATEMENT Particulars Amount Amount Sales Revenue $    8,40,000 Less: Cost of Goods Sold Opening Merchandise $         65,000 Add: Purchases of merchandise $     2,85,000 Less: Closing Merchandise $     1,20,000 $    2,30,000 Gross Profit $    6,10,000 Less: Selling and administrative Expenses Variable Selling Expenses $     1,02,900 (2100 units X $ 49) Variable Administrative Expenses $         39,900 (2100 units X $ 19) Fixed Selling Expenses 150000 Varible Selling Expenses 120000 $    4,12,800 Net Profit $    1,97,200 Answer = 2 THE ALPINE HOUSE , INCORPORATION CONTRIBUTION FORMATE INCOME STATEMENT Particulars Amount Amount Sales Revenue $    8,40,000 Less: Cost of Goods Sold Opening Merchandise $         65,000 Add: Purchases of merchandise $     2,85,000 Less: Closing Merchandise $     1,20,000 $    2,30,000 Gross Contribution Margin $    6,10,000 Less: Variable Selling amd administrative Expenses Variable Selling Expenses $     1,02,900 (2100 units X $ 49) Variable Administrative Expenses $         39,900 (2100 units X $ 19) $    1,42,800 Contribution Margin $    4,67,200 Less : Fixed Expenses of selling and administrative expenses Fixed Selling Expenses 150000 Varible Selling Expenses 120000 $    2,70,000 Net Profit $    1,97,200 Answer = 3 Calculation of contribution margin per unit Contribution Margin per unit = Contribution Margin / Number of units sold Contribution Margin per unit = $ 197,200 / 2100 Units Contribution Margin per unit = $ 93.90 Answer = $ 93.90