Fill In the blanks 2 2.00 points The Alpine House, Inc, is a large retailer of w

Question

Fill In the blanks

2 2.00 points The Alpine House, Inc, is a large retailer of winter sports equipment An income statement for the company's Ski Department for a recent quarter is presented below. income Statement-Ski Department For the Quarter Ended March 31 $795,960 303,510 Cost of goods sold Gross margin Sellin $241,000 Seling expenses Administrative expenses 155,000 396 000 Net operating income Skis sell on the averace for $396 per pair Variable selling expenses are $49 per pair of skis sold Th

Explanation / Answer

Sales price per pair = $396

Nof units sold = 795,960/396

= 2010 units

Varable cost per pair = 151 + 49 + (155,000*29%)/2010

= 222.36

..

Contribution Format Income Statement

Sales = 795,960

Less:-V.Cost (2010*222.36) = 446,940

Contribution = 349,010

Less:- Fixed Cost [(241,000 -49*2010) + 71% of 155,000] = 252,560

Net Income = 96450

..

..

Part-2:-

Contribution covering Fixed Cost = 252,560/2010

= $125.65

Contribution covering profit = 96450/2010

= $47.99

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