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 13,000 $ 15 $ 1 $ 1 $ 20,000 $ 14,000 $ 10,000 $ 24,000 $ 87,000 Cherokee, Incorporated Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses Selling expenses Net operating income 0 Sales Cherokee, Incorporated Contribution Format Income Statement Variable expenses: Cost of goods sold Selling expenses Administrative expenses Fixed expenses: Administrative expenses Selling expenses Net operating income 0 0