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	$	1,496,000
Selling price per pair of skis	$	440
Variable selling expense per pair of skis	$	50
Variable administrative expense per pair of skis	$	18
Total fixed selling expense	$	145,000
Total fixed administrative expense	$	105,000
Beginning merchandise inventory	$	70,000
Ending merchandise inventory	$	105,000
Merchandise purchases	$	300,000

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?

Solutions

Expert Solution

No. of units sold = $1,496,000 / $440 = 3400 units

3). Contribution margin per unit = Contribution margin / Units sold
= $999,800 / 3,400
= $294.06 per unit.

ekkarill92 answered 10 months ago

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