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Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 1 4 , 0 0 0 Selling price per unit

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 $ 2
Variable administrative expense per unit $ 1
Total fixed selling expense $ 19,000
Total fixed administrative expense $ 13,000
Beginning merchandise inventory $ 10,000
Ending merchandise inventory $ 24,000
Merchandise purchases $ 87,000
Required:
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.

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