EXERCISE 3-4 Contribution Format Income Statement (L04) The Alpine House, Ine , is a large retailer of winter sports equipment. An income statement for the company's Ski Department for a recent quarter is presented below: The Alpine House, Inc. Income Statement-Ski Department For the Quarter Ended March 31 $150.000 90.000 60.000 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Net operating income $30,000 10,000 40.000 $ 20.000 Skis sell, on the average, for $750 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 205 variable and 80% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair Required: 1. Prepare a contribution format income statement for the quarter. 2. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits