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Cherokee inc is a merchandiser that provided the following

29/04/2021 Client: muhammad11 Deadline: 2 Day

Cherokee Inc. is a merchandiser that provided the following information:

Amount
Number of units sold 14,000
Selling price per unit $ 15
Variable selling expense per unit $ 2
Variable administrative expense per unit $ 2
Total fixed selling expense $ 20,000
Total fixed administrative expense $ 14,000
Beginning merchandise inventory $ 11,000
Ending merchandise inventory $ 26,000
Merchandise purchases $ 86,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

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