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

Number of units sold		12,000
Selling price per unit	$	16.00
Variable selling expense per unit	$	2.00
Variable administrative expense per unit	$	1.50
Total fixed selling expense	$	19,000
Total fixed administrative expense	$	16,000
Beginning merchandise inventory	$	11,000
Ending merchandise inventory	$	25,000
Merchandise purchases	$	88,000

Required:

A: Prepare a traditional income statement.

B: Prepare a contribution format income statement.