90.2K
Verified Solution
Link Copied!
Cherokee Incorporated is a merchandiser that provided the following information:
| | Amount |
| Number of units sold | 13,000 |
| Selling price per unit | $ 18 |
| Variable selling expense per unit | $ 1 |
| Variable administrative expense per unit | $ 2 |
| Total fixed selling expense | $ 18,000 |
| Total fixed administrative expense | $ 15,000 |
| Beginning merchandise inventory | $ 9,000 |
| Ending merchandise inventory | $ 24,000 |
| Merchandise purchases | $ 86,000 |
Required:
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.
Answer & Explanation
Solved by verified expert
