5-25 activity levels and cost drivers shroeder machine shop has the following activities: a. machine operation b. machine setup c. production scheduling d. materials receiving e. research and development f. machine maintenance g. product design h. parts administration i. final inspection of a sample of products j. materials handling

Cherokee inc. is a merchandiser that provided the following information: amount 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: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.