Question

Cherokee Inc. is a merchandiser that provided the following information: Amount 11,000 $ 18 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 $19,000 $ 14, eee $ 9,000 $ 26,000 $90,000 Required: 1. Prepare a traditional income statement 2. Prepare a contribution format income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2

Answer 1

Traditional Income Statement Particolors Amount 1,98000 73,000 Sales Crooox 18) Cost of goods sold C9000 + 90000 –26000) Gross margin Selling & Admin empenser 21,000 125000 30000 Selling enpenses (1000X 01)+ 19000 Admin enpenses (1000 x1 + 14000 I 5000 t6 000 70000 Contribution format Income statement - Particolars 198000 Sales Variable expenses (73000) (1000) COGS (1000) 103000 Selling expenses (1000 x1) Admin expenses Crooox1) Contribution margin fined expenses Selling expenses fined expenses Net operating in 19000 14000 70000 income