Redhawk, Inc., is a merchandiser that provided the following information: Number of units sold 11,000 Selling price per unit $ 18 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 1.0 Total fixed selling expense $ 22,000 Total fixed administrative expense $ 16,000 Merchandise inventory, beginning balance $ 10,000 Merchandise inventory, ending balance $ 22,000 Merchandise purchases $ 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
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