Reference no: EM132979232

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

Number of units sold 14,000

Selling price per unit $18

Variable selling expense per unit$1

Variable administrative expense per unit $2

Total fixed selling expense $21,000

Total fixed administrative expense $16,000

Beginning merchandise inventory $11,000

Ending merchandise inventory $25,000

Problem 1: Prepare a traditional income statement.

Problem 2: Prepare a contribution format income statement.