Cherokee Manufacturing Company established the following standard price and cost data:

Sales price	$	12.00	per unit
Variable manufacturing cost	$	7.20	per unit
Fixed manufacturing cost	$	3,600	total
Fixed selling and administrative cost	$	1,200	total

Cherokee planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units.

Required

1. Prepare the pro forma income statement in contribution format that would appear in a master budget.

2. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.

Options for left side of chart include: Fixed Manufacturing, Fixed Selling & Administrative, Sales, Variable Manufacturing, Variable Selling and Administrative.

The last section of the chart is asking if it's a net loss or net income***

Ignore the 3rd section in the chart, where there's a zero.

CHEROKEE MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,000 Units 0 $ 0 CHEROKEE MANUFACTURING COMPANY Pro Forma Income Statement Flexible Budget 2,200 Units 0 $ 0