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 Required: 1. Prepare a traditional income statement. Amount 11,000 $ 15 $ 2 $ 1 $ 21,000 $ 15,000 $ 12,000 $ 24,000 $ 86,000 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Selling expenses Cost of goods sold Gross margin Traditional Income Statement Selling and administrative expenses: Sales Cost of goods sold Net operating income $ 165,000 (74,000) EA $ 43,000 74,000 91,000 91,000 $ 22,000 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Selling expenses Administrative expenses Fixed expenses: Selling expenses $ 74,000 22,000 11,000 21,000 Administrative expenses 15,000 Net operating income $ 165,000 107,000 36,000 $ 22,000