Cherokee Incorporated is a merchandiser that provided the following information:

	Amount
Number of units sold	14,000
Selling price per unit	$ 17
Variable selling expense per unit	$ 1
Variable administrative expense per unit	$ 3
Total fixed selling expense	$ 19,000
Total fixed administrative expense	$ 14,000
Beginning merchandise inventory	$ 8,000
Ending merchandise inventory	$ 24,000
Merchandise purchases	$ 88,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.