Nonprice rationing devices are required
A. because the price system does not allocate resources

efficiently.
B. when there are price floors but not when there are price ceilings.

C. so that prices will go back to equilibrium.

D. to allocate goods when there is a price ceiling.

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.