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

Traditional Income Statement

Contribution Format Income Statement

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 12,000 Selling price per unit $ 16.00 Variable selling expense per unit 2.00 Variable administrative expense per unit 1.00 Total fixed selling expense $ 22,000 Total fixed administrative expense $ 16,000 Beginning merchandise inventory $ 12,000 Ending merchandise inventory $ 26,000 Merchandise purchases $ 85,000 Required: 1. Prepare a traditional income statement. CHEROKEE, INC. Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 0 Net operating income :.. . . 2. Prepare a contribution format income statement. CHEROKEE, INC. Contribution Format Income Statement Sales Variable expenses: 0 Fixed expenses: 0