Cherokee Inc. is a merchandiser that provided the following information: Amount
Number of units sold 10,000
Selling price per unit $ 18
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 $ 10,000
Ending merchandise inventory $ 25,000
Merchandise purchases $ 88,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.