3.

value: 5.78 points

Exercise 1-5 Traditional and Contribution Format Income Statements [LO5]

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

Number of units sold		12,000
Selling price per unit	$	17
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	1.0
Total fixed selling expense	$	20,000
Total fixed administrative expense	$	14,000
Merchandise inventory, beginning balance	$	11,000
Merchandise inventory, ending balance	$	22,000
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)Merchandise purchasesSalesMerchandise inventory, beginning balanceMerchandise inventory, ending balanceCost of goods sold		$
(Click to select)Cost of goods soldMerchandise inventory, ending balanceMerchandise inventory, beginning balanceSalesMerchandise purchases
(Click to select)Net operating incomeNet operating lossContribution marginGross margin
Selling and administrative expenses:
(Click to select)Merchandise purchasesSalesSelling expensesCost of goods soldAdministrative expenses	$
(Click to select)Administrative expensesCost of goods soldSelling expensesSalesMerchandise purchases
(Click to select)Net operating incomeGross marginContribution marginNet operating loss		$

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)Administrative expensesInsuranceCost of goods soldSalesSelling expenses		$
Variable expenses:
(Click to select)Administrative expensesSelling expensesInsuranceSalesCost of goods sold	$
(Click to select)Cost of goods soldAdministrative expensesInsuranceSalesSelling expenses
(Click to select)Selling expensesInsuranceSalesCost of goods soldAdministrative expenses
(Click to select)Net operating lossContribution marginGross marginNet operating income
Fixed expenses:
(Click to select)InsuranceSalesAdministrative expensesSelling expensesCost of goods sold
(Click to select)Cost of goods soldAdministrative expensesSalesInsuranceSelling expenses
(Click to select)Net operating incomeGross marginNet operating lossContribution margin		$

578 points Exercise 15 Traditional and Contribution Format Income Statements CLO5] Redhawk, Inc., is a merchandiser that provided the following information: Number of units sold 12,000 Selling price per unit 17 Variable selling expense per unit Variable administrative expense per unit 20,000 Total fixed selling expense s 14,000 Total fixed administrative expense 11,000 Merchandise inventory, beginning balance Merchandise inventory, ending balance S 22,000 87,000 Merchandise purchases 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 ncome Statement (Click to select) Click to select Click to select Selling and administrative expenses: Click to select Click to select Click to select 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) Variable expenses: Click to select Click to select (Click to select) Click to select Fixed expenses: Click to select (Click to select) (Click to select)