prepare the traditional income statement, then prepare contribution format income statement

6 Exercise 2-6 Traditional and Contribution Format Income Statement 0.46 Cherokee Inc. is a merchandiser that provided the following information: points Skipped eBook 1 Number of units sold 14,000 Selling price per unit $ 17 Variable selling expense per unit $ 1 Variable administrative expense per unit $ Total fixed selling expense $ 20,000 Total fixed administrative expense $ 16,000 Beginning merchandise inventory $ 10,000 Ending merchandise inventory $ 24,000 Merchandise purchases $ 87,000 Hint References Required: 1. Prepare a traditional income statement. CHEROKEE, INC. Traditional Income Statement Sales $ 238,000 6 Required: 1. Prepare a traditional income statement. 0.46 points CHEROKEE, INC. Traditional Income Statement Skipped $ 238,000 73,000 165,000 eBook Hint Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses References 34,000 30,000 64,000 Net operating income 6 2. Prepare a contribution format income statement. 0.46 points CHEROKEE, INC. Contribution Format Income Statement Skipped Variable expenses: eBook Hint References Fixed expenses: 0