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

Number of units sold		13,000
Selling price per unit	$	15.00
Variable selling expense per unit	$	2.00
Variable administrative expense per unit	$	1.50
Total fixed selling expense	$	21,000
Total fixed administrative expense	$	16,000
Beginning merchandise inventory	$	12,000
Ending merchandise inventory	$	25,000
Merchandise purchases	$	85,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.