Cherokee Incorporated is a merchandiser that provided the following information:

	Amount
Number of units sold	12,000
Selling price per unit	$ 16
Variable selling expense per unit	$ 2
Variable administrative expense per unit	$ 2
Total fixed selling expense	$ 22,000
Total fixed administrative expense	$ 14,000
Beginning merchandise inventory	$ 10,000
Ending merchandise inventory	$ 23,000
Merchandise purchases	$ 88,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.