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Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 14,000 Selling price per unit $ 17 Variable selling expense per

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

Number of units sold 14,000
Selling price per unit $ 17
Variable selling expense per unit $ 2
Variable administrative expense per unit $ 2
Total fixed selling expense $ 20,000
Total fixed administrative expense $ 15,000
Beginning merchandise inventory $ 12,000
Ending merchandise inventory $ 25,000
Merchandise purchases $ 86,000

Required:
1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

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