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?
Step by Step Answer:
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer