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$1,260,000
Selling price per pair of skis$450
Variable selling expense per pair of skis$50
Variable administrative expense per pair of skis$19
Total fixed selling expense$155,000
Total fixed administrative expense$105,000
Beginning merchandise inventory$70,000
Ending merchandise inventory$105,000
Merchandise purchases$285,000

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?

Refer to the below explanation

Explanation:

1. Traditional income statement.

Revenue $1,260,000

Cost of goods sold = Beginning inventory + purchases - Ending inventory

= $70,000 + $285,000 - $105,000

=$ 250,000

Gross profit= Sales - cost of goods sold

= $1,260,000 - $250,000

=$1,010,000

Administrative expenses = $19 × ($1,260,000/450) + $105,000

= $158,200

Selling expenses = $50 × ($1,260,000/450) + $155,000

=$295,000

EBITDA = $556,800

2. Contribution margin statement

Sales. = $1,260,000

Less

Total Variable cost:

Cost of goods sold =$250,000

Variable selling exp.

2800 × $50=$140,000

Administrative exp.

2800 × $19=$53,200

Total variable cost. =$56,800

Contribution margin =$1,203,200

Less

Total Fixed costs:

Selling expenses =$155,000

Administrative expenses=$105,000

Total fixed cost =$260,000

Net profit. = $943,200

3. Contribution margin per ratio

= Contribution margin / Quantity

=$1,203,200 / 2,800

=$430

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !

a. $48.75

is the answer to your question