Cherokee Inc. is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount 11,000 $ 16 $ 2 $ 2 $ 20,000 $ 15,000 $ 11,000 $ 25,000 $ 89,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement ces Sales 176,000 75,000 101,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 22,000 22,000 44,000 Net operating income Required 1 Required 2 Prepare a contribution format Income statement. Cherokee, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses: 0