Managerial Accounting: E5-4 The Alpine House, Inc., is a large retailer of winter sports

Managerial Accounting 
Exercise 5-4 Traditional and Contribution Format Income Statement 
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: 
The Alpine House, Inc. 
Income Statement—Ski Department 
For the Quarter Ended March 31 
Sales 150,000 
Cost of goods sold 90,000 
Gross margin 60,000 
Selling and administrative expenses: 
Selling expenses 30,000 
Administrative expenses 10,000 40,000 
Net operating income 20,000 

Skis sell, on the average, for $750 per pair. Variable selling expenses are $50 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 20% variable and 80% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $450 per pair. 

1. Prepare a contribution format income statement for the quarter. (Omit the "$" sign in your response.) 
2. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits? (Omit the "$" sign in your response.)
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