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 $ 1,419,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 50 Variable administrative expense per pair of skis $ 19 Total fixed selling expense $ 145,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 60,000 Ending merchandise inventory $ 105,000 Merchandise purchases $ 310,000 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?

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 $ 1,419,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 50 Variable administrative expense per pair of skis $ 19 Total fixed selling expense $ 145,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 60,000 Ending merchandise inventory $ 105,000 Merchandise purchases $ 310,000 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?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 18MCQ: 2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year,...

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Exercise 1-15 Traditional and Contribution Format Income Statements [LO1-6]

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	$	1,419,000
Selling price per pair of skis	$	430
Variable selling expense per pair of skis	$	50
Variable administrative expense per pair of skis	$	19
Total fixed selling expense	$	145,000
Total fixed administrative expense	$	100,000
Beginning merchandise inventory	$	60,000
Ending merchandise inventory	$	105,000
Merchandise purchases	$	310,000

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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