Sales Selling price per pair of skis Variable selling expens

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 1,100,000 440 49 17 150,000 110,000 $60,000 $ 120,000 315, 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 Required1Required 2Required 3 Prepare a traditional income statement for the quarter ended March 31 The Alpine House, Inc. Traditional Income Statement Selling and administrative expenses

Solution

The Alpine House, Inc. Traditional Income Statement Sales 1100000 Cost of goods sold 255000 =60000+315000-120000 Gross margin 845000 Selling and administrative expenses: Selling expenses 272500 Administrative expenses 152500 425000 Net operating income 420000 Contribution Format Income Statement Sales 1100000 Variable expenses: Cost of goods sold 255000 Selling expenses 122500 Administrative expenses 42500 420000 Contribution margin 680000 Fixed expenses: Selling expenses 150000 Administrative expenses 110000 260000 Net operating income 420000 3 Contribution margin per unit = 680000/2500= 272