Reference no: EM133017546
Question - Cherokee Inc. is a merchandiser that provided the following information:
Amount Number of units sold 11,000
Selling price per unit $17
Variable selling expense per unit $2
Variable administrative expense per unit $1
Total fixed selling expense $19,000
Total fixed administrative expense $15,000
Beginning merchandise inventory $12,000
Ending merchandise inventory $23,000
Merchandise purchases $89,000
Required -
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.