Reference no: EM13966155

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.