The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an...
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The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an income statement for the companys Ski department for a recent quarter: THE ALPINE HOUSE, INC. Income StatementSki Department For the Quarter Ended March Sales $ Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses $ Administrative expenses Net income $ On average, skis sell for $ per pair. Variable selling expenses are $ per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are variable and fixed. The company does not manufacture its own skis; it purchases them from a supplier for $ per pair. Required: Prepare a contribution margin income statement for the quarter. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits?
The Alpine House, Inc. is a large retailer of winter sports equipment. Here is an income statement for the companys Ski department for a recent quarter:
THE ALPINE HOUSE, INC.
Income StatementSki Department
For the Quarter Ended March
Sales $
Less: Cost of goods sold
Gross margin
Less: Operating expenses:
Selling expenses $
Administrative expenses
Net income $
On average, skis sell for $ per pair. Variable selling expenses are $ per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are variable and fixed. The company does not manufacture its own skis; it purchases them from a supplier for $ per pair.
Required:
Prepare a contribution margin income statement for the quarter. For every pair of skis sold during the quarter, what was the contribution toward covering fixed expenses and toward earning profits?
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