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

Number of units sold		12,000
Selling price per unit	$	16
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	1.5
Total fixed selling expense	$	19,000
Total fixed administrative expense	$	13,000
Merchandise inventory, beginning balance	$	8,000
Merchandise inventory, ending balance	$	25,000
Merchandise purchases	$	87,000

Required:
1.	Prepare a traditional income statement. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

Redhawk, Inc. Traditional Income Statement
(Click to select)SalesCost of goods soldMerchandise inventory, beginning balanceMerchandise inventory, ending balanceMerchandise purchases		$
(Click to select)Cost of goods soldMerchandise purchasesMerchandise inventory, ending balanceSalesMerchandise inventory, beginning balance
(Click to select)Contribution marginGross marginNet operating lossNet operating income
Selling and administrative expenses:
(Click to select)SalesMerchandise purchasesSelling expensesCost of goods soldAdministrative expenses	$
(Click to select)Cost of goods soldSelling expensesMerchandise purchasesSalesAdministrative expenses
(Click to select)Contribution marginNet operating incomeNet operating lossGross margin		$

2.	Prepare a contribution format income statement. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

Redhawk, Inc. Contribution Format Income Statement
(Click to select)Selling expensesSalesInsuranceCost of goods soldAdministrative expenses		$
Variable expenses:
(Click to select)Administrative expensesCost of goods soldSalesSelling expensesInsurance	$
(Click to select)Administrative expensesInsuranceCost of goods soldSalesSelling expenses
(Click to select)Selling expensesInsuranceCost of goods soldSalesAdministrative expenses
(Click to select)Net operating lossContribution marginNet operating incomeGross margin
Fixed expenses:
(Click to select)Administrative expensesSalesInsuranceSelling expensesCost of goods sold
(Click to select)SalesInsuranceCost of goods soldSelling expensesAdministrative expenses
(Click to select)Gross marginNet operating lossNet operating incomeContribution margin		$

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