Exercise 1-6 (Static) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Incorporated is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Amount 20,000 $30 $4 $2 $ 40,000 $ 30,000 $ 24,000 $ 44,000 $ 180,000

Exercise 1-6 (Static) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Incorporated is a merchandiser that pro 1 ided the following information: Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement