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 |
$ |
150,000 |
| Selling price per pair of skis |
$ |
750 |
| Variable selling expense per pair of skis |
$ |
50 |
| Variable administrative expense per pair of skis |
$ |
10 |
| Total fixed selling expense |
$ |
20,000 |
| Total fixed administrative expense |
$ |
20,000 |
| Beginning merchandise inventory |
$ |
30,000 |
| Ending merchandise inventory |
$ |
40,000 |
| Merchandise purchases |
$ |
100,000 |
| |
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 toward fixed expenses and profits for each pair of skis sold during the quarter?