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.