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hard to figure out answer Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the

hard to figure out answer

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Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,160 each. The average cost ofa television from the manufacturer is $1,550. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Costs Cost Formula Selling: Advertising $ 1,325 per month Delivery of televisions $ 49 per television sold Sales salaries and commissions $ 3,260 per month, plus 5% of sales Utilities $ 430 per month Depreciation of sales facilities $ 3,720 per month Administrative: Executive salaries $11,300 per month Depreciation of office equipment $ 665 per month Clerical 5 2,280 per month, plus $60 per television sold Insurance $ 600 per month During April, the company sold and delivered 211 televisions. Required: 1. Prepare an income statement for April using the traditional format with costs organized by function. Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses 2. Prepare an income statement for April, this time using the contribution format with costs organized by behaviour. Show costs and revenues on both a total and a per unit basis down through contribution margin. Total variable expenses Fixed expenses: Total fxed expenses

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