Haaki Shop, Inc. traditional & contribution margin format

Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:

Amount
Total sales revenue $ 1,364,000
Selling price per surfboard $ 440
Variable selling expense per surfboard $ 47
Variable administrative expense per surfboard $ 18
Total fixed selling expense $ 145,000
Total fixed administrative expense $ 115,000
Merchandise inventory, beginning balance $ 75,000
Merchandise inventory, ending balance $ 105,000
Merchandise purchases $ 280,000
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Required:
1. Prepare a traditional income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

2. Prepare a contribution format income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

3.What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

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Solution Summary

Your traditional and contribution margin income statements are shown in excel (click in cells to see computations). I have also shown you how to solve for Cost of Goods Sold. The contribution margin per unit is also revealed.