Exercise 1-6 (Static) Traditional and Contribution Format Income Statement Cherokee Incorporated is a merchandiser that provided the following information: 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 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Amount 20,000 $ 30 $ 4 $ 2 $ 40,000 $ 30,000 $ 24,000 $ 44,000 $ 180,000 2. Prepare a contribution format income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement. $ 60,000 Cherokee, Incorporated Contribution Format Income Statement Sales $ Variable expenses: Cost of goods sold 160,000 Selling expenses 80,000 Administrative expenses 40,000 280,000 320,000 Contribution margin Fixed expenses Selling expenses Administrative expenses 40,000 30,000 70,000 250,000 Net operating income $ 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional inome statement. Cherokee, Incorporated Traditional Income Statement 600,000 160,000 44,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 120,000 70,000 190,000 250,000 Net operating income $ Required Required 2 >