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

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