DeLuxe Limo Service has the following information for March: Sales revenue $ 315,000 Variable costs of operations, excluding labor costsa 94,500 Employee wages and salariesb 106,500 Manager salariesc 39,500 Fixed cost of automobilesd 31,500 Building costs (rent, utilities, etc.)e 19,000 a 2 percent of this cost was wasted due to poor directions given to limo drivers. b 15 percent of this cost was for time spent by limo drivers because of poor directions. c 15 percent of this cost was time taken to address customer complaints. d The limos have 35 percent unused capacity. e The building has 15 percent unused capacity. Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.)

DELUXE LIMO SERVICE
Value Income Statement
For the Month Ending March 31
	Nonvalue-added Activities	Value-added Activities	Total
Sales revenue
Cost of services sold:
Variable costs of operations, excluding labor costs
Employee wages and salaries
Fixed cost of automobiles
Gross margin (loss)
Administrative expenses:
Manager salaries
Building costs
Operating income (loss)