Exercise $1-6($Algo$)$ Traditional and Contribution Format Income Statements $[$LO$1-6]$

$2$

Cherokee Incorporated is a merchandiser that provided the following information:

points

eBook

Hint

References

Number of units sold

Selling price per unit

Variable selling expense per unit

Variable administrative expense per unit

Total fixed selling expense

Total fixed administrative expense

Beginning merchandise inventory

Ending merchandise inventory

Merchandise purchases

Amount

$12,000$

$$18$

$$2$

$$21,000$

$$15,000$

$$10,000$

$$22,000$

$$86,000$

Required:

Prepare a traditional income statement.

Prepare a contribution format income statement.How to solve...