Cherokee Inc. is a merchandiser that provided the following information: Amount 11,000 16 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 $ 2 $ 2 $ 22,000 $ 14,000 $ 12,000 $ 23,000 $ 89,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Answer is complete but not entirely correct. 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 $ 176,000 70,000 106,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 40,000 35,000 75,000 31,000 Net operating income $ Required: 1. Prepare a traditional income statement 2. Prepare a contribution format income statement. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement. $ 176,000 Cherokee, Inc. Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 70,000 Selling expenses 22,000 Administrative expenses 22,000 114,000 62,000 X > Contribution margin Fixed expenses: Selling expenses Administrative expenses >> 18,000 13,000 X 31,000 31,000 X Net operating income $