The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information…
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Question “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
$
150,000
Selling price per pair of skis
$
750
Variable selling expense per pair of skis
$
50
Variable administrative expense per pair of skis
$
10
Total fixed selling expense
$
20,000
Total fixed administrative expense
$
20,000
Beginning merchandise inventory
$
30,000
Ending merchandise inventory
$
40,000
Merchandise purchases
$
100,000
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?
Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Inc. Traditional Income Statement Selling and administrative expenses:
Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses:
What was the contribution margin per unit? Contribution margin per unit
Answer
Units sold = 150000/750=200 15000 90000 60000 Alpine House Inc Traditional Income Statement sales Revneue Gross Margin Selling and Administrative Costs Selling Expenses (200*50),+20000 30000 Administrative Costs (200*10+20000 222000 Total Selling and Administration Expenses Net Operating Income Beginning inventoy 40000 More: Ending Invenotry 40000 92000 52000 8000
150000 The Alpine House Inc Contribution Income Statement Sales Revneue Variable Expenses Cost Of Goods Sold 90000 Selling Prices 10000 Administrative Costs 20000 Total Fixed Expenses Contribution Margin Selling Expenses 20000 Total Fixed cost Net operating Income 102000 48000 8000 Selling price Per unit Variable cost per unit =102000/200 contribution Margin for Units 750 510 244
Conclusion
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