Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. 12,000 $ 16 $ 2 $ 2 $ 20,000 $ 13,000 $ 11,000 $ 26,000 $ 89,000 Required 1 Required 2 Prepare a traditional income statement. Sales Cost of goods sold Cherokee, Incorporated Traditional Income Statement 192,000 74,000 118,000 Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 0 Net operating income $ 37,000 Required T Required 2 > Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement ces Variable expenses: Fixed expenses: 0 0