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Winter Leisure is a retailer of snowboards. The information below is for the quarter ended...

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Accounting

Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount Total sales revenue $ 1,600,000 Selling price per snowboard $ 800 Variable selling expense per snowboard $ 100 Variable administrative expense per snowboard $ 40 Total fixed selling expense $ 300,000 Total fixed administrative expense $ 240,000 Merchandise inventory, beginning balance $ 60,000 Merchandise inventory, ending balance $ 90,000 Merchandise purchases $ 640,000
Required: c) Prepare a traditional income statement for the quarter ended December 31. a. Prepare a contribution format income statement for the quarter ended December 31. b. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? c. What would operating income be if only 1,500 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 1,500 snowboards.

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