Reference no: EM132572106

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

                                                              Amount

Number of units sold                       14,000

Selling price per unit                           $18

Variable selling expense per unit               $2

Variable administrative expense per unit   $2

Total fixed selling expense                 $21,000

Total fixed administrative expense          $13,000

Beginning merchandise inventory            $11,000

Ending merchandise inventory               $25,00

0Merchandise purchases                    $89,000

Required:

Question 1. do a traditional income statement.

Question 2. do a contribution format income statement.