Exercise 1-6 Traditional and Contribution Format Income Statements (L01-6) Cherokee Inc. 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 Amount 13,000 $ 17 $ 2 $ 1 $ 22,000 $ 13,000 $ 9,000 $ 26,000 $ 88,000 Required: 1. Prepare a traditional income statement 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales $ 221,000 71,000 150,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 48,000 26.000 Administrative expenses Net operating income 74,000 76,000 $ Retu Required 1 Required 2 Prepare a contribution format income statement. $ 221,000 Cherokee, Inc. Contribution Format Income Statement Sales Variable expenses Cost of goods sold $ 71,000 Selling expenses 26,000 Administrative expenses 13,000 110,000 111,000 Administrative expenses Contribution margin Fixed expenses Selling expenses Administrative expenses 22.000 13,000 Selling expenses Net operating income O 35,000 76,000 $