Question

In the traditional income statement for Redhawk, Inc., what is the net operating income?

a) $65,000
b) $35,000
c) $40,000
d) $25,000

In the contribution format income statement for Redhawk, Inc., what is the contribution margin?
a) $110,000
b) $20,000
c) $35,000
d) $65,000

Answer 1

The net operating income and the contribution margin for Redhawk, Inc. cannot be determined without further financial details from the company's traditional and contribution format income statements, respectively.

Step-by-step explanation:

The question asks about two different financial measures from two types of income statements for a company named Redhawk, Inc. To calculate the net operating income, we generally subtract all operating expenses from the company's total revenue. However, the information provided does not specify the exact figures that should be used for this calculation. Similarly, for the contribution margin in the contribution format income statement, we would subtract variable expenses from sales revenue. Without the explicit revenue and cost figures for the traditional and contribution format income statements, it is impossible to provide the correct answers for the net operating income and the contribution margin.