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 $2,040 each. The average cost of a television from the manufacturer is $1,060. 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 1,405 per month 48 per television sold 3,620 per month, plus 5% of sales 442 per month 3,560 per month $ 12,450 per month $ 730 per month $ 1,950 per month, plus $60 per television sold $ 830 per month During April, the company sold and delivered 178 televisions. Required: 1. Prepare an income statement for April using the traditional format with costs organized by function. HOME ENTERTAINMENT Required: 1. Prepare an income statement for April using the traditional format with costs organized by function. HOME ENTERTAINMENT Traditional Income Statement For the Month Ended April 30 8 Selling and administrative expenses: Selling expenses. Total selling expenses 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. HOME ENTERTAINMENT Contribution Format Income Statement For the Month Ended April 30 Total Per Unit Variable expenses: Total variable expenses Fixed expenses