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Redhawk inc is a merchandiser that provided the following information

07/11/2020 Client: arwaabdullah Deadline: 10 Days

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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