Cherokee Incorporated is a merchandiser that provided the following information:

	Amount
Number of units sold	10,000
Selling price per unit	$ 17
Variable selling expense per unit	$ 1
Variable administrative expense per unit	$ 2
Total fixed selling expense	$ 22,000
Total fixed administrative expense	$ 15,000
Beginning merchandise inventory	$ 10,000
Ending merchandise inventory	$ 26,000
Merchandise purchases	$ 86,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.