Reference no: EM132990953
Traditional and Contribution Format Income Statements Cherokee Incorporated is a merchandiser that provided the following information:
Amount Number of units sold 11,000
Selling price per unit $ 15
Variable selling expense per unit $ 1
Variable administrative expense per unit $ 2
Total fixed selling expense $ 18,000
Total fixed administrative expense $ 15,000
Beginning merchandise inventory $ 9,000
Ending merchandise inventory $ 22,000
Merchandise purchases $ 89,000
Required:
Problem 1. Prepare a traditional income statement.
Problem 2. Prepare a contribution format income statement.