Rectang Corp., an e-commerce firm, recently adopted a new supply chain management system. By virtue of the new system, the company is able to deliver products to customers in a shorter period of time than other e-commerce companies. The supply chain management system may become outdated in the near future; however, it has presently led Rectang Corp. to becoming the industry leader. In the given scenario, Rectang Corp. has achieved .

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.