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. 2. Prepare a contribution format income statement. Amount 10,000 $ 15 $ 2 $ 3 $ 21,000 $ 16,000 $ 9,000 $ 24,000 $ 87,000 Required 1 Required 2 Prepare a traditional income statement. Sales Cherokee, Incorporated Traditional Income Statement $ 150,000 72,000 78,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses 21,000 Administrative expenses 16,000 Net operating income 37,000 Cherokee, Incorporated Contribution Format Income Statement Variable expenses: Fixed expenses: 0 0