ation.com Ch. 1 HW for Credit Saved Help Save & Exit Submit Amount Sales Selling

Question

ation.com Ch. 1 HW for Credit Saved Help Save & Exit Submit Amount Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory 1,204,000 430 46 15 130, 000 $ 115,000 $ 75, 000 s 110,000 $305,000 of skis 25 points Merchandise purchases 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? eBook Hint Complete this question by entering your answers in the tabs below Print Required1 Required 2 Required 3 Prepare a traditional income statement for the quarter ended March 31 The Alpine House, Inc. Traditional Income Statement $ 1,204,000 270,000 934,000 Sales Cost of goods sold margin Selling expenses 2,800 2,800 operating income Required 1 Required 2> Mc Graw

Explanation / Answer

Rreq 1. Traditional income Statement: Sales 1204000 Cost of Good sold 270000 Gross margin 934000 Selling and Admin cost Selling expense (128800+130000) 258800 Admin expense (42000+115000) 157000 Total Expensne 415800 Net Income 518200 Note: Cost of Goods sold: Beginning Inventory of merchandise 75000 Add: Purchases 305000 Less: ending inventory of Merchandise 110000 Cost of Good s sold 270000 Number of units sold: Sales 1204000 Divide: Selling price 430 Number of units sold: 2800 Selling cost per unit 46 Variable selling expense 128800 Admin expense per unit 15 Variable Admin expense 42000 Req 2. Contribution Margin income Statement: Sales revenue 1204000 Less: Variable cost Cost of Goods sold 270000 Selling expense 128800 Admin expense 42000 Total Variable cost 440800 Contribution margin    763200 Less: fixed cost Selling expense 130000 Admin expense 115000 Total fixed cost 245000 Net income 518200 Req 3. Sales revenue 1204000 Less: Total variable ccost 440800 Contribution margin earned 763200 Divide: Number of units 2800 CM per unit 272.57

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