EXERCISE 2-6 Traditional and Contribution Format Income Statements ILO 2-6 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.... 20,000 $30 $4 $2 $40,000 $30.000 $24,000 $44,000 $180,000 Merchandise purchases Required I. Prepare a traditional income statement. 2. Prepare a contribution format income statement. EXERCISE 2-7 Differential Opportunity, and Sunk Costs (LO 2-7