Exercise 1-6 Traditional and Contribution Format Income Statements [LO1-6]

Cherokee Inc. is a merchandiser that provided the following information:

Number of units sold11,000

Selling price per unit$16

Variable selling expense per unit$2

Variable administrative expense per unit$2

Total fixed selling expense$19,000

Total fixed administrative expense$15,000

Beginning merchandise inventory$9,000

Ending merchandise inventory$22,000

Merchandise purchases$90,000

Required:1.Prepare a traditional income statement.

2.Prepare a contribution format income statement.

Attached screenview of the problem and answer selection box