Cherokee Incorporated is a merchandiser that provided the following information:

	Amount
Number of units sold	20,000
Selling price per unit	$ 30
Variable selling expense per unit	$ 4
Variable administrative expense per unit	$ 2
Total fixed selling expense	$ 40,000
Total fixed administrative expense	$ 30,000
Beginning merchandise inventory	$ 24,000
Ending merchandise inventory	$ 44,000
Merchandise purchases	$ 180,000

Prepare a contribution format income statement.

Cherokee, Incorporated
Contribution Format Income Statement
Sales
Variable expenses:
		0
Fixed expenses:
		0
Net operating income

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.