Cherokee Inc. is a merchandiser that provided the following information Amount 12,000 $ 17 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 21,000 15,000 $ 9,000 26,000 $ 90,000 Required c 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. F3 ood 4 FS F6 F7

Traditional Income Statement

Sales Revenues [12000 units x $ 17]

$204,000

Cost of Goods Sold [9000 + 90000 - 26000]

$73,000

Gross Profits

$131,000

Selling & administrative expenses:

Variable selling expenses [12000 x 1]

$12,000

Variable administrative expense [12000 x 2]

$24,000

Fixed selling expenses

$21,000

Fixed administrative expense

$15,000

$72,000

Net [Operating] Income

$59,000

Contribution Format Income Statement

Sales Revenues [12000 units x $ 17]

$204,000

Variable Expenses:

Merchandise purchased

$90,000

Variable selling expenses [12000 x 1]

$12,000

Variable administrative expense [12000 x 2]

$24,000

$126,000

Contribution margin

$78,000

Fixed expenses:

Fixed selling expenses

$21,000

Fixed administrative expense

$15,000

$36,000

Net [Operating] Income

$42,000