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 12,000 $ 16 $ 1 $ 1 $ 19,000 $13,000 $ 10,000 $ 22,000 $ 89,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated answers in the tabs below. Traditional Income Statement Sales $ 192,000 Cost of goods sold 77,000 ( Gross margin 115,000 Selling and administrative expenses Administrative expenses 13,000 Selling expenses 19,000 0 0 32,000 Net operating income 59,000 ( Required 1 Required 2 > Required 11 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Sales Variable expenses Cost of goods sold S 12,000 Administrative expenses 12,000 Selling expenses 12.000 Contribution margin Fixed expenses: Administrative expenses 13,000 Selling expenses 19,000 Net operating income