DeLuxe Limo Service has the following information for March: Sales revenue Variable costs of operations, excluding labor costs Employee wages and salariesb Manager salaries Fixed cost of automobiles Building costs (rent, utilities, etc.)e $295,000 88,500 104,500 33,500 29,500 17,000 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 Value-added Total Activities Activities 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) b. What value would there be to the managers at DeLuxe from preparing the same information in April? Preparing a April statement helps DeLuxe see whether he is improving in reducing nonvalue-added activities Preparing a April statement helpsDeLuxe see whether he is improving in reducing value-added activities