Cherokee Incorporated is a merchandiser that provided the following information:

AmountNumber of units sold10,000Selling price per unit$ 17Variable selling expense per unit$ 1Variable administrative expense per unit$ 3Total fixed selling expense$ 19,000Total fixed administrative expense$ 14,000Beginning merchandise inventory$ 12,000Ending merchandise inventory$ 24,000Merchandise purchases$ 87,000

Required:

1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.