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
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.
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