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

Amount Number of units sold 12,000

Selling price per unit $ 15

Variable selling expense per unit $ 1

Variable administrative expense per unit $ 1

Total fixed selling expense $ 19,000

Total fixed administrative expense $ 14,000

Beginning merchandise inventory $ 12,000

Ending merchandise inventory $ 23,000

Merchandise purchases $ 88,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.