Traditional and Contribution Format Income Statements [LO5]

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

Required:
1. Prepare a t raditional i ncome s tatement.
2. Prepare a c ontribution f ormat i ncome s tatement.

Transcribed Image Text:

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 Merchandise inventory, ending balance Merchandise purchases.... $12,000 $22,000 $90,000