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

 

	Amount
Number of units sold		14,000
Selling price per unit	$	15
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	2
Total fixed selling expense	$	20,000
Total fixed administrative expense	$	14,000
Beginning merchandise inventory	$	11,000
Ending merchandise inventory	$	26,000
Merchandise purchases	$	86,000

 

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Answer rating: 100% (QA)

Answer Cherokee Inc Traditional Income Statement Workings Sales 198000 11000 18 Cost of goods sold 7... View the full answer