Reference no: EM132470572
Problem - Traditional and Contribution Format Income Statements
Cherokee Inc. is a merchandiser that provided the following information:
Amount Number of units sold 13,000
Selling price per unit $17
Variable selling expense per unit $1
Variable administrative expense per unit $1
Total fixed selling expense $20,000
Total fixed administrative expense $14,000
Beginning merchandise inventory $9,000
Ending merchandise inventory $23,000
Merchandise purchases $88,000
Required -
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.