1. Chung-Ang Company is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 1-1) Prepare a traditional income statement. 1-2) Prepare a contribution format income statement. 20,000 $30 $4 $2 #40,000 $30,000 $24,000 $44,000 $180,000 2. Chung-Ang Company has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company's monthly fixed expense is $50,000. 2-1) Calculate the unit sales needed to attain a target profit of $20,000, 2-2) Calculate the dollar sales needed to attain a target profit of $30,000. 3. if the units produced equals the units sold, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?