2024 – Redhawk Inc is a merchandiser that provided the following information Number of units sold

Redhawk, Inc., is a merchandiser that provided the following information:

 

Number of units sold ———–  10,000

 

Selling price per unit  ———- $15

 

Variable selling expense per unit—$2

 

Variable administrative expense per unit ——— $1

 

Total fixed selling expense  ——–  $20,000

 

Total fixed administrative expense  ——–  $15,000

 

Merchandise inventory, beginning balance  ———  $12,000

 

Merchandise inventory, ending balance  ———— $22,000

 

Merchandise purchases ———– $90,000

 

 

 

Required:

 

1.  Prepare a traditional income statement

 

2.  Prepare a contribution format income statement