Cherokee Incorporated is a merchandiser that provided the following Information: 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 Amount 11,000 $ 18 $ 2 $ 2 $ 19,000 $ 14,000 $ 11,000 $ 24,000 $ 87,000 Required: 1. Prepare a traditional Income statement. 2. Prepare a contribution format Income statement. Complete this question by entering your answers in the tabs below. 3 Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Sales Cost of goods sold Gross margin Traditional Income Statement Selling and administrative expenses: Administrative expenses Manufacturing overhead Variable manufacturing overhead Selling expenses Net operating income 09 S 36.000 69 198,000 74,000 124,000 41,000 77.000 S 47.000 Required 2 Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Variable manufacturing overhead Administrative expenses Fixed expenses: Administrative expenses Selling expenses Net operating income Administrative expenses Beginning merchandise inventory Cost of goods sold Direct labor Sales Variable expenses: Cost of goods sold Direct materials Ending merchandise inventory Fixed manufacturing overhead Indirect labor Indirect materials 11 Administrative expenses Selling expenses Net operating income KKKI Required 1 Required 2 Prepare a contribution format income statem Cherokee, Incorporated Contribution Format Income Sta Sales Variable expenses: Cost of goods sold Indirect materials Manufacturing overhead Purchases Sales Selling expenses Variable manufacturing overhead Administrative expenses Selling expenses Net operating income