Chapter 1 EXERCISE 1-6 Traditional and Contribution Format Income Statements LO1-6 Cherokee Inc. is a merchandiser that provided the following information: Amount 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... 20,000 $30 $4 $2 $40,000 $30,000 $24,000 $44,000 $180,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. EXERCISE 1-7 Direct