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 $1,700 each. The average cost of a television from the manufacturer is $1,260. 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 $ 1,345 per month $ 40 per television sold $ 3,320 per month, plus 2% of sales $ 422 per month $ 3,830 per month $ 8,750 per month $ 860 per month $ 1,530 per month, plus $54 per television sold $ 520 per month During April, the company sold and delivered 207 televisions. 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. HOME ENTERTAINMENT Contribution Format Income Statement For the Month Ended April 30 Total Per Unit Sales $ 351,900 $ 1,700 Variable expenses: Sales commissions Total variable expenses 0 0 351,900 $ 1,700 Fixed expenses: Total fixed expenses 0 $ 351,900