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