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

	Amount
Number of units sold		12,000
Selling price per unit	$	16
Variable selling expense per unit	$	1
Variable administrative expense per unit	$	2
Total fixed selling expense	$	22,000
Total fixed administrative expense	$	15,000
Beginning merchandise inventory	$	10,000
Ending merchandise inventory	$	25,000
Merchandise purchases	$	88,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Cherokee, Inc. Traditional Income Statement Selling and administrative expenses: Cherokee, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses