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Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 13,000 Selling price per unit $ 18 Variable selling expense

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

Amount
Number of units sold 13,000
Selling price per unit $ 18
Variable selling expense per unit $ 1
Variable administrative expense per unit $ 2
Total fixed selling expense $ 20,000
Total fixed administrative expense $ 14,000
Beginning merchandise inventory $ 10,000
Ending merchandise inventory $ 26,000
Merchandise purchases $ 89,000

Required:

1. Prepare a traditional income statement.

image text in transcribed

2. Prepare a contribution format income statement.

image text in transcribed

Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Selling and administrative expenses: 0 Prepare a contribution format income statement. Cherokee, Inc. Contribution Format Income Statement Variable expenses: 0 Fixed expenses: 0

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