Heinsert Inc. is a computer manufacturing firm. Its core business process is the production of efficient processors and storage disks. It outsources the manufacturing of its computer screen to a camera and lens manufacturing firm called Zetax, which is highly efficient and has world-class capabilities. Identify the most appropriate reason why Heinsert outsources its computer screen production.

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.