The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales $ 1,312,000
Selling price per pair of skis $ 410
Variable selling expense per pair of skis $ 45
Variable administrative expense per pair of skis $ 15
Total fixed selling expense $ 160,000
Total fixed administrative expense $ 115,000
Beginning merchandise inventory $ 70,000
Ending merchandise inventory $ 115,000
Merchandise purchases $ 320,000
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 toward fixed expenses and profits for each pair of skis sold during the quarter?