2. Prepare a contribution format income statement.

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

		Amount
Number of units sold		11,000
Selling price per unit	$	18
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	1
Total fixed selling expense	$	18,000
Total fixed administrative expense	$	14,000
Beginning merchandise inventory	$	11,000
Ending merchandise inventory	$	25,000
Merchandise purchases	$	88,000