contestada

he 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 $ 1,107,000 Selling price per pair of skis $ 410 Variable selling expense per pair of skis $ 45 Variable administrative expense per pair of skis $ 17 Total fixed selling expense $ 155,000 Total fixed administrative expense $ 110,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 100,000 Merchandise purchases $ 280,000 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?

Respuesta :

facundobuzzetti

Answer:

Instructions are listed below

Explanation:

1) The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

In this exercise:

Revenues= 1107000

COGS= Beginnig inventory + purchase - ending inventory= 250000

Gross profit= $857000

Administrative expense= $17 *2700q+110000= 155900

Selling expense= $155,000 + 45*2700q= 276500

EBITDA= 424600

2)A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.

Sales= 1107000

Variable costs:

Cost of goods sold= 250000

Variable Selling expense= $45*2700= 121500

Variable administration expense= 17*2700= 45900

Total variable costs= 417400

Contribution Margin= 689600

Fixed costs:

Selling expense= 155000

administration expense= 110000

Total fixed cost= 265000

Net profit= 424600

3) Unitary contribution margin= contribution margin/Q= 689600/2700= $255.41

Otras preguntas