Problem number 2: 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 Units sold 2,200 Selling price per pair of skis $400 Variable selling expense per pair of skis $45 Variable administrative expense per pair of skis $15 Total fixed selling expense $150,000 Total fixed administrative expense $120,000 Beginning merchandise inventory $80,000 Ending merchandise invent $110,000 Merchandise purchases $320,000 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?
