Cherokee Inc. is a merchandiser that provided the following information:
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Number of units sold
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11,000
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Selling price per unit
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$
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17
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Variable selling expense per unit
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$
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1
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Variable administrative expense per unit
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$
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3
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Total fixed selling expense
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$
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20,000
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Total fixed administrative expense
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$
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15,000
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Beginning merchandise inventory
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$
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8,000
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Ending merchandise inventory
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$
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24,000
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Merchandise purchases
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$
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87,000
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Required:
1. Prepare a traditional income statement.
Cherokee Inc - Traditional Income Statement
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Selling and administrative expenses
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0
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2. Prepare a contribution format income statement.
Cherokee Inc - Contribution Format Income Statement
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Variable Expenses:
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0
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Fixed Expenses:
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0
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