just need help with these two The Alpine House, Inc., is a large retailer of sno

ID: 2330852 • Letter: J

Question

just need help with these two

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 Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $ 1,540,000 46 17 5 150,000 5 100,000 5 65,000 5 105,000 $ 285,000 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? Complete this question by entering your answers in the tabs below Required 1 Required 2Required 3 Prepare a contribution format income statement for the quarter ended March 31 he Alpine House, I Contribution Format Income Statement ales $1,540.000 Variable expenses: Cost of goods sold S 245,000 245,000 Fixed expenses: Re

Explanation / Answer

The Alpine House, Inc.

Contribution Format Income Statement

Sales

$ 1,540,000

Variable expenses:

Variable Cost of goods sold(3500*46)

$ 245,000

Variable selling expenses(3500*17)

$ 161,000

Variable Administrative expenses

$ 59,500

$ 465,500

Contribution Margin

$ 1,074,500

Less: Fixed Cost

Fixed selling costs

$ 150,000

Fixed Administrative expenses

$ 100,000

$ 250,000

Net Profit(Income from operation)

$ 824,500

No. of units = Sales/ selling price per unit = $ 1,540,000/$440= 3500 units

2.Contribution margin per unit

Contribution margin per unit= Total Contribution Margin/ No. of units

= $ 1,074,500/ 3500 units

= $ 307 per unit