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

AmountNumber of units sold13,000Selling price per unit$16Variable selling expense per unit$1Variable administrative expense per unit$3Total fixed selling expense$21,000Total fixed administrative expense$15,000Beginning merchandise inventory$11,000Ending merchandise inventory$25,000Merchandise purchases$86,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.