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Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:
| | Amount |
| Total sales revenue | $ | 989,000 |
| Selling price per surfboard | $ | 430 |
| Variable selling expense per surfboard | $ | 60 |
| Variable administrative expense per surfboard | $ | 30 |
| Total fixed selling expense | $ | 220,000 |
| Total fixed administrative expense | $ | 190,000 |
| Merchandise inventory, beginning balance | $ | 83,000 |
| Merchandise inventory, ending balance | $ | 103,000 |
| Merchandise purchases | $ | 319,000 |
| |
Required:
1. Prepare a traditional income statement for the quarter ended May 31.
2. Prepare a contribution format income statement for the quarter ended May 31.
3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter?
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