Cherokee Inc is a merchandiser that provided the following information 

Amount Number of units sold........................12,000 

Selling price per unit ............................................ $17 

Variable selling expense per unit...........................$1 

Variable administrative expense per unit.............$2 

Total fixed selling expense.............................$21,000 

Total fixed administrative expense...............$15,000 

Beginning merchandise inventory................$11,000 

Ending merchandise inventory.....................$25,000 

Merchandise purchases.................................$88,000

 

Required 

1 Prepare a traditional income statement 

2 Prepare a contribution format income statement