P23-6A Audio and Video is a chain of home electronics stores. Each store has a manager who answers to a city manager, who in turn reports to a statewide manager. The actual income statements of Store No. 13, all stores in the Topeka area (including Store No. 13), and all stores in the state of Kansas (including all Topeka stores) are summarized as follows for April: Store No. 13 Topeka State of Kansas Sales revenue $39,800 $486,000 $3,264,500 Expenses: City/state manager's office expenses.. Cost of goods sold. S $ 16.000 S 44.000 13.000 171,300 1.256.800 Salary expense Depreciation expense Utilities expense. Rent expense. 5,000 37.500 409,700 3,000 26.100 320,000 2.700 19,300 245.600 1,600 16,400 186,000 Total expenses. Operating income. 25,300 286.600 2,462,100 $14.500 $199.400 $ 802,400 Budgeted amounts for April were as follows: Store No. 13 Topeka Sales revenue. Expenses: $42.000 $470,000 State of Kansas $3,145,000 City/state manager's office expenses. $ $ 17,000 $ 43,000 Cost of goods sold. Salary expense Depreciation expense. Utilities expense Rent expense.. 14.200 172,800 1.209.000 5,600 37.900 412,000 3.500 25.400 320,000 2.100 17,000 240,000 1,600 15,700 181.000 Total expenses. 27,000 285,800 2,405,000 Operating income $15,000 $184.200 $ 740,000 Required 1. Prepare a report for April that shows the performance of Store No. 13. all the stores in the Topeka area, and all the stores in the state of Kansas. Follow the format of Exhibit 23-18. 2. As the city manager of Topeka, would you investigate Store No. 13 on the basis of this report? Why or why not? 3. Briefly discuss the benefits of budgeting. Base your discussion on Audio and Video's per- formance report.