Cherokee Inc. is a merchandiser that provided the following information: Number of units sold . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . $30 Variable selling expense per unit . . . . . . . . . . . . . . . $4 Variable administrative expense per unit . . . . . . . . . $2 Total fixed selling expense . . . . . . . . . . . . . . . . . . . $40,000
Cherokee Inc. is a merchandiser that provided the following information:
|
Number of units sold . . . . . . . . . . . . . . . . . . . . . . . . |
20,000 |
|
Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . |
$30 |
|
Variable selling expense per unit . . . . . . . . . . . . . . . |
$4 |
|
Variable administrative expense per unit . . . . . . . . . |
$2 |
|
Total fixed selling expense . . . . . . . . . . . . . . . . . . . |
$40,000 |
|
Total fixed administrative expense . . . . . . . . . . . . . |
$30,000 |
|
Beginning merchandise inventory . . . . . . . . . . . . . . |
$24,000 |
|
Ending merchandise inventory . . . . . . . . . . . . . . . . |
$44,000 |
|
Merchandise purchases . . . . . . . . . . . . . . . . . . . . . |
$180,000 |
Required:
-
Prepare a traditional income statement.
-
Prepare a contribution format income statement.
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