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 $2.460 each. The average cost of a television from the manufacturer is $1,300. 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 $ 1,425 per month $ 44 per television sold $ 3,200 per month, plus 5% of sales $ 482 per month $ 3,690 per month $ 8,900 per month $ 900 per month $ 2,350 per month, plus $51 per television sold $ 675 per month During April, the company sold and delivered 174 televisions. Required: 1. Prepare an Income statement for April using the traditional format with costs organized by function. During April, the company sold and delivered 174 televisions. 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 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. HOME ENTERTAINMENT Contribution Format Income Statement For the Month Ended April 30 Total Per Unit Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses