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

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

 

          Amount
Number of units sold         12,000
Selling price per unit    $    15
Variable selling expense per unit    $    2
Variable administrative expense per unit    $    2
Total fixed selling expense    $    21,000
Total fixed administrative expense    $    15,000
Beginning merchandise inventory    $    9,000
Ending merchandise inventory    $    25,000
Merchandise purchases    $    88,000
 

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

 

Thanks