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

		Amount
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	$	21,000
Total fixed administrative expense	$	15,000
Beginning merchandise inventory	$	8,000
Ending merchandise inventory	$	25,000
Merchandise purchases	$	85,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare a traditional income statement.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare a traditional income statement.

Cherokee, Inc.
Traditional Income Statement
Gross margin
Selling and administrative expenses:
		0

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare a contribution format income statement.

Cherokee, Inc.
Contribution Format Income Statement
Variable expenses:
		0
Contribution margin
Fixed expenses:
		0