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

 

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

Number of units sold20,000
Selling price per unit$30
Variable selling expense per unit$4
Variable administrative expense per unit$2
Total fixed selling expense$40,000
Total fixed administrative expense$30,000
Beginning merchandise inventory$24,000
Ending merchandise inventory$44,000
Merchandise purchases$180,000

Required:
1.Prepare a traditional income statement.


2.Prepare a contribution format income statement.









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