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 11,000 $ 17.00 S 1.00 S 1.50 $ 20,000 $ 14,000 10,000 S 26,000 $ 89,000 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 Variable expenses: 0 Fixed expenses 0