Reference no: EM132886374
Question - Cherokee Inc. is a merchandiser that provided the following information:
Amount Number of units sold = 13,000
Selling price per unit = $17
Variable selling expense per unit = $2
Variable administrative expense per unit = $3
Total fixed selling expense = $21,000
Total fixed administrative expense = $15,000
Beginning merchandise inventor = $9,000
Ending merchandise inventory = $24,000
Merchandise purchases $90,000
Required -
1. Prepare traditional income statement.
2. Prepare contribution format income statement.