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 13,000 $ 18 $ 1 $ 3 $ 19,000 $ 16,000 $ 11,000 $ 24,000 $ 87,000 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 Traditional Income Statement Sales $ 234,000 76,000 158,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 32,000 55,000 Net operating income 87.000 71,000 $ Required Required 2 > Required 1 Required 2 Prepare a contribution format income statement. $ 234,000 Cherokee, Incorporated Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 76,000 Selling expenses 13,000 Administrative expenses 39,000 128,000 106,000 Contribution margin Fixed expenses: Selling expenses Administrative expenses 19,000 16,000 Net operating income 35,000 71,000 $