Question
In: Accounting
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Sales $ 1,271,000
Selling price per pair of skis $ 410
Variable selling expense per pair of skis $ 50
Variable administrative expense per pair of skis $ 18
Total fixed selling expense $ 150,000
Total fixed administrative expense $ 125,000
Beginning merchandise inventory $ 65,000
Ending merchandise inventory $ 115,000
Merchandise purchases $ 290,000
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?
(Please write clearly in a piece of paper in a formatted way so that I can see properly.)
Solutions
Expert Solution
1. Prepare a traditional income statement for the quarter ended March 31.
| Sales | 1271000 | |
| Less: Cost of goods sold | ||
| Beginning inventory | 65000 | |
| Purchase | 290000 | |
| Less; Ending inventory | -115000 | |
| Cost of goods sold | 240000 | |
| Gross margin | 1031000 | |
| Less:Selling and administrative expe | ||
| Selling expense (3100*50+150000) | 305000 | |
| Administrative expense (3100*18+125000) | 180800 | |
| Total selling and administrative expense | 485800 | |
| Net operating income | 545200 |
2. Prepare a contribution format income statement for the quarter ended March 31.
| Sales | 1271000 | |
| Less: Cost of goods sold | ||
| Beginning inventory | 65000 | |
| Purchase | 290000 | |
| Less; Ending inventory | -115000 | |
| Cost of goods sold | 240000 | |
| manufacturing margin | 1031000 | |
| Less:Variable Selling and administrative expe (50+18)*3100 | 210800 | |
| Contribution margin | 820200 | |
| Fixed selling and administrative expense | 275000 | |
| Net operating income | 545200 |
Contribution margin per unit = 820200/3100 = 264.58 per unit
ekkarill92 answered 3 years agoRelated Solutions
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
861,000
Selling price per pair of skis
$
410
Variable selling expense per pair of skis
$
47
Variable administrative expense per pair of skis
$
17
Total fixed selling expense
$
130,000
Total fixed administrative expense
$
105,000
Beginning merchandise inventory
$
70,000
Ending merchandise inventory
$
110,000
Merchandise purchases
$
290,000
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
1,118,000
Selling price per pair of skis
$
430
Variable selling expense per pair of skis
$
47
Variable administrative expense per pair of skis
$
20
Total fixed selling expense
$
145,000
Total fixed administrative expense
$
115,000
Beginning merchandise inventory
$
80,000
Ending merchandise inventory
$
115,000
Merchandise purchases
$
315,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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 $ 1,050,000
Selling price per pair of skis $ 420
Variable selling expense per pair of skis $ 46
Variable administrative expense per pair of skis $ 16
Total fixed selling expense $ 150,000
Total fixed administrative expense $ 125,000
Beginning merchandise inventory $ 70,000
Ending merchandise inventory $ 115,000
Merchandise purchases $ 295,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
1,376,000
Selling price per pair of skis
$
430
Variable selling expense per pair of skis
$
47
Variable administrative expense per pair of skis
$
15
Total fixed selling expense
$
150,000
Total fixed administrative expense
$
110,000
Beginning merchandise inventory
$
70,000
Ending merchandise inventory
$
110,000
Merchandise purchases
$
295,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
946,000
Selling price per pair of skis
$
430
Variable selling expense per pair of skis
$
48
Variable administrative expense per pair of skis
$
17
Total fixed selling expense
$
130,000
Total fixed administrative expense
$
130,000
Beginning merchandise inventory
$
70,000
Ending merchandise inventory
$
120,000
Merchandise purchases
$
280,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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 $ 1,394,000 Selling price per pair of skis $
410 Variable selling expense per pair of skis $ 48 Variable
administrative expense per pair of skis $ 16 Total fixed selling
expense $ 135,000 Total fixed administrative expense $ 110,000
Beginning merchandise inventory $ 65,000 Ending merchandise
inventory $ 105,000 Merchandise purchases $ 315,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
1,320,000
Selling price per pair of skis
$
400
Variable selling expense per pair of skis
$
46
Variable administrative expense per pair of skis
$
15
Total fixed selling expense
$
155,000
Total fixed administrative expense
$
125,000
Beginning merchandise inventory
$
80,000
Ending merchandise inventory
$
120,000
Merchandise purchases
$
315,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
1,408,000
Selling price per pair of
skis
$
440
Variable selling expense per
pair of skis
$
50
Variable administrative expense
per pair of skis
$
16
Total fixed selling expense
$
150,000
Total fixed administrative
expense
$
115,000
Beginning merchandise
inventory
$
75,000
Ending merchandise
inventory
$
115,000
Merchandise purchases
$
285,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
861,000
Selling price per pair of skis
$
410
Variable selling expense per pair of skis
$
49
Variable administrative expense per pair of skis
$
18
Total fixed selling expense
$
150,000
Total fixed administrative expense
$
130,000
Beginning merchandise inventory
$
75,000
Ending merchandise inventory
$
110,000
Merchandise purchases
$
295,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
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
$
1,025,000
Selling price per pair of skis
$
410
Variable selling expense per pair of skis
$
49
Variable administrative expense per pair of skis
$
18
Total fixed selling expense
$
150,000
Total fixed administrative expense
$
110,000
Beginning merchandise inventory
$
65,000
Ending merchandise inventory
$
115,000
Merchandise purchases
$
285,000...
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