1.

value: 11.00 points

Cherokee Inc. is a merchandiser that provided the following information:

Number of units sold		12,000
Selling price per unit	$	16
Variable selling expense per unit	$	1
Variable administrative expense per unit	$	1
Total fixed selling expense	$	20,000
Total fixed administrative expense	$	15,000
Beginning merchandise inventory	$	11,000
Ending merchandise inventory	$	25,000
Merchandise purchases	$	89,000

Required:
1.	Prepare a traditional income statement.

2.	Prepare a contribution format income statement.