Cherokee Inc. is a merchandiser that provided the following information: Number of units sold Amount 20,000 Selling price per unit $30 Variable selling expense per unit $4 Variable administrative expense per unit $2 Total fixed selling expense $40,000 Total fixed administrative expense $30,000 Beginning merchandise inventory $24,000 Ending merchandise inventory $44,000 Merchandise purchases $180,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Page 51