Income Statements Traditional and Contributive Format [LO2-6]

The Alpine House, Inc., is a large retailer of snow skis. The company compiled the following information for the quarter ended March 31:

		Amount
Total sales revenue	ps	150.000
Sale price per pair of skis	ps	750
Variable selling expenses per pair of skis	ps	50
Variable administrative cost per pair of skis	ps	10
Total Fixed Selling Expenses	ps	20,000
Total Fixed Administrative Expense	ps	20,000
Beginning merchandise inventory	ps	30,000
Final inventory of merchandise	ps	40.000
Merchandise purchases	ps	100,000

Required:
1.	Prepare a traditional income statement for the quarter ended March 31.

2.	Prepare an income statement in contribution format for the quarter ended March 31.

3.	What was the contribution to fixed expenses and profit for each pair of skis sold during the quarter? (Round your final answer to the nearest whole dollar amount.)

Answer rating: 100% (QA)

1 Traditional Income Statement Total Sales Revenue 150000 Cost of Goods Sold COGS Beginning Merchandise Inventory 30000 Merchandise Purchases 100000 T... View the full answer