The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown

Question:

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
Selling price per pair of skis . . . . . . . . . . . . . . . . . . . .         $750
Variable selling expense per pair of skis. . . . . . . . . .           $50
Variable administrative expense per pair of skis . . .          $10
Total fixed selling expense . . . . . . . . . . . . . . . . . . . . .    $20,000
Total fixed administrative expense. . . . . . . . . . . . . . .   $20,000
Beginning merchandise inventory . . . . . . . . . . . . . . .   $30,000
Ending merchandise inventory . . . . . . . . . . . . . . . . . .   $40,000
Merchandise purchases. . . . . . . . . . . . . . . . . . . . . . . .  $100,000


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?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781260247787

17th Edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

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