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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 $ 1,050,000
Selling price per pair of skis $ 420
Variable selling expense per pair of skis $ 46
Variable administrative expense per pair of skis $ 16
Total fixed selling expense $ 150,000
Total fixed administrative expense $ 125,000
Beginning merchandise inventory $ 70,000
Ending merchandise inventory $ 115,000
Merchandise purchases $ 295,000
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 margin per unit?
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