4. (6 points) The Alpine House, Inc., is a large retailer of snow skis. The...
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4. (6 points) The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31 Amount Sales # of pairs of skis sold Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $ 160,000 200 units 800 60 12 $ 20,000 $ 20,000 $ 30,000 $ 40,000 $ 100,000 Note: to calculate COGS you will need to use the following equation: Beg. Merch. Inventory + Merch. Purchases - End. Merch. Inventory. COGS is a variable expense 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 margin per unit? (Hint: Take total contribution margin and divide it by number of units)
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