The growth in real investment spending a. declines significantly during recessions, and is subject to larger changes than is real consumption. b. follows a smooth, upward trend, interrupted only infrequently by brief recessions. c. follows an erratic upward trend that is unrelated to the timing of recessions. d. trends smoothly upwards and downwards at regular intervals.

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.