The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: AmountSales$1,419,000Selling price per pair of skis$430Variable selling expense per pair of skis$46Variable administrative expense per pair of skis$16Total fixed selling expense$160,000Total fixed administrative expense$110,000Beginning merchandise inventory$70,000Ending merchandise inventory$110,000Merchandise purchases$295,000 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?

Answer 1) Working Note:Computation of total no. of units sold is as follows: Total No. of units…

Answered: The Alpine House, Inc., is a large…

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

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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	$	46
Variable administrative expense per pair of skis	$	16
Total fixed selling expense	$	160,000
Total fixed administrative expense	$	110,000
Beginning merchandise inventory	$	70,000
Ending merchandise inventory	$	110,000
Merchandise purchases	$	295,000

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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