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
Total sales revenue $ 1,276,000
Selling price per pair of skis $ 440
Variable selling expense per pair of skis $ 47
Variable administrative expense per pair of skis $ 19
Total fixed selling expense $ 155,000
Total fixed administrative expense $ 100,000
Beginning merchandise inventory $ 75,000
Ending merchandise inventory $ 105,000
Merchandise purchases $ 320,000
1. Prepare a traditional income statement
2. Prepare a contribution income statement
3. What was the contribution toward fixed expenses and profits for each pair of skis sold?
