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

Amount Number of units sold 14,000

Selling price per unit $ 17

Variable selling expense per unit $ 2

Variable administrative expense per unit $ 2

Total fixed selling expense $ 20,000

Total fixed administrative expense $ 15,000

Beginning merchandise inventory $ 9,000

Ending merchandise inventory $ 22,000

Merchandise purchases $ 87,000

Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.