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 17 $ 1 $ 2 $21,000 $ 16,000 $10,000 $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 Sales $ 187,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 0 Net operating income Rec Required Prepare a contribution format income statement. $ 187,000 Cherokee, Inc. Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Selling expenses 42,000 Administrative expenses 16,000 58,000 Contribution margin Fixed expenses: Selling expenses Administrative expenses 21,000 16,000 37,000 Net operating income