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 $2,240 each. The average cost of a television from the manufacturer is $1.450. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Cost Formula Costs Selling: Advertising Delivery of televisions Sales salaries and commissions Utilities Depreciation of sales facilities Administrative Executive salaries Depreciation of office equipment Clerical Insurance $1,195 per month $ 55 per television sold $3,470 per month, plus 10% of sales $ 524 per month $ 3,580 per month $ 10,800 per month $ 660 per month $ 2,320 per month, plus $53 per television sold $ 895 per month During April, the company sold and delivered 241 televisions During April, the company sold and delivered 241 televisions. Required: 1. Prepare an income statement for April using the traditional format with costs organized by function. 539,840 (349,450) 190,390 HOME ENTERTAINMENT Traditional Income Statement For the Month Ended April 30 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses: Advertising (1.195) Delivery of televisions (13,256) Sales salaries and commissions (57.454) Utilities (524) Depreciation of sales facilities (3,580) Total selling expenses (76,008) Administrative expenses: Executive salaries (10,000) Depreciation of office equipment (660) Clerical (15,093) Insurance (895) Total administrative expenses S (26,648) Total selling and administrative expenses Operating income (102.656) 87,734 S 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 HERTERTAINERE Coronat For the Month Ended Apr 30 Total Per Unit Variable expenses Total variable expenses 0 0 0 $ 0 Fored expenses Total foxed expenses $ 0