Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 11,886 Selling price per unit $ 1? Variable selling expense per unit $ 1 Variable administrative expense per unit $ 3 Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 'l-'b'l-'b'b H l' i... Q (B 55 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 Traditional Income Statement Purchases S 187,000 Sales (76,000) Gross loss 111,000 Selling and administrative expenses: Selling expenses $ 29,000 Administrative expenses 35,000 Administrative expenses 64,000 Net operating income S 47,000 Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Sales $ 187,000 Variable expenses: Cost of goods sold $ 76,000 Selling expenses 11,000 Administrative expenses 22,000 Variable manufacturing overhead 109,000 78,000 Fixed expenses: Selling expenses 18,000 Administrative expenses 13,000 Selling expenses (31,000) Net operating income $ 47,000