Cherokee Incorporated is a merchandiser that provided the following information:

	Amount
Number of units sold	11,000
Selling price per unit	$ 15
Variable selling expense per unit	$ 1
Variable administrative expense per unit	$ 2
Total fixed selling expense	$ 19,000
Total fixed administrative expense	$ 16,000
Beginning merchandise inventory	$ 8,000
Ending merchandise inventory	$ 25,000
Merchandise purchases	$ 85,000

Required:

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

• equired 1
• Required 2

Prepare a traditional income statement.

Cherokee, Incorporated
Traditional Income Statement
Selling and administrative expenses: