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Home / Questions / Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Inc. is a

Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Inc. is a

Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6]

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 $ 3
Total fixed selling expense $ 20,000
Total fixed administrative expense $ 16,000
Beginning merchandise inventory $ 9,000
Ending merchandise inventory $ 23,000
Merchandise purchases $ 87,000
 

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

 

Apr 04 2020 View more View Less

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