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

		Amount
Number of units sold		11,000
Selling price per unit	$	17
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	2
Total fixed selling expense	$	19,000
Total fixed administrative expense	$	13,000
Beginning merchandise inventory	$	10,000
Ending merchandise inventory	$	26,000
Merchandise purchases	$	90,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format 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		?

Cherokee, Inc.
Contribution Format Income Statement
Variable expenses:
Sales		?
Cost of goods sold		?
Selling expenses		?
Administrative expenses		?
		0
Contribution margin		?
Fixed expenses:
Selling expenses		?
Administrative expenses.		?
		0
Net operating income		?