Cherokee Inc. is a merchandiser that provided the following information: Amount
Number of units sold 13,000
Selling price per unit $ 16
Variable selling expense per unit $ 2
Variable administrative expense per unit 3
Total fixed selling expense $ 21,000
Total fixed administrative expense 14,000
Beginning merchandise inventory 9,000
Ending merchandise inventory $ 23,000
Merchandise purchases $ 86,000
Required:
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.