Reference no: EM132653609

Maui Mike's is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:

Total sales revenue

Amount                                                        $750,000

Selling price per unit                                         $500

Variable selling expense per unit                            $40

Variable administrative expense per unit                 $15

Total fixed selling expense                                 $125,000

Total fixed administrative expense                        $100,000

Merchandise inventory, beginning balance                 $65,000

Merchandise inventory, ending balance                   $85,000

Merchandise purchases                                          $295,000

Required:

Question 1. Prepare traditional income statement for the quarter ended May 31.

Question 2. Prepare a contribution format income statement for the quarter ended May 31.

Question 3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (State this figure in a single dollar amount per surfboard.)