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Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 11,000 Selling price per unit $ 17 Variable selling expense per
Cherokee Inc. is a merchandiser that provided the following information:
Number of units sold | 11,000 | |
Selling price per unit | $ | 17 |
Variable selling expense per unit | $ | 1 |
Variable administrative expense per unit | $ | 3 |
Total fixed selling expense | $ | 20,000 |
Total fixed administrative expense | $ | 15,000 |
Beginning merchandise inventory | $ | 8,000 |
Ending merchandise inventory | $ | 24,000 |
Merchandise purchases | $ | 87,000 |
Required: | |
1. | Prepare a traditional income statement. |
Cherokee Inc - Traditional Income Statement
Selling and administrative expenses | ||
0 | ||
2. Prepare a contribution format income statement.
Cherokee Inc - Contribution Format Income Statement
Variable Expenses: | ||
0 | ||
Fixed Expenses: | ||
0 | ||
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