When agents make advances from their own funds in conducting the principal's business, the principal:

a. has a duty to reimburse the agent for expenses incurred for the principal.
b. has a duty to reimburse the agent even if the agent is not acting within the scope of his/her authority.
c. has no duty to reimburse the agent because the agent commingled fungible goods.
d. has no duty to reimburse the agent because the agent has assumed the burden.

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.