Example (Exercise 1-6A) Traditional and Contribution Format Income Statements - Cherokee Incorporated is a merchandiser that provided the following information:

	Amount
Number of units sold	11,000
Selling price per unit	$ 16
Variable selling expense per unit	$ 1
Variable administrative expense per unit	$ 1
Total fixed selling expense	$ 21,000
Total fixed administrative expense	$ 13,000
Beginning merchandise inventory	$ 9,000
Ending merchandise inventory	$ 26,000
Merchandise purchases	$ 86,000

1a. Prepare a traditional income statement.

1b.. Prepare a contribution format income statement.

(Please show formulas, I am lost on 1b.! Thank you!)