Levine Company is a menurfacturer of very inexpensive cell phones and television sets. The company uses recycled perts and a highly structured manufacturing process to keep costs low so that it can sell at very low prices. The company uses lean accounting procedures to help keep costs low and to examine financial performance. Levine uses value streams to study the profitability of its two main product groups, cell phones and TVs. Information about finished goods inventory, sales, production, and average sales price Follows Cell Phobe Group TV Group Units feginning inventory Price Sold Budgeted and actual production 2,300 $ 105 14.10e 14. Be 7,500 155 15, 19.00 Levine's costs for the current quarter are as follows. Note that some of the company's manufacturing and selling costs are traceable directly to the two value streams, while other costs are not traceable Laviro considers all traceable fixed costs to be controllable tyy the manager of each group No. Levine's value stream shows operating come determined by the full costing method, the difference Hon the traditional luli costing income statement is that the effect on income from change in Inventory is shown as a separate item the value-stream income statement cell Phone Group IV up Total 359 390 5 Unit variable costs Manufacturing Selling and administrative Traceable Fixed costs Manufacturing Selling and adwinistrative Nontraceable fixed costs Knufacturing Selling and administrative 233.60 106,000 272,340 136, $50, 9:40 212,800 124,000 85,600 Required: Consider Levine's two value streams as profit centers, and use the contribution income statement as a guide to develop a value stream income statement for the company. (See Exhibit 189 for an example of a contribution income statement.) In your solution replace the term controllable margin (in Exhibit 18 9) with value stream profit. Be sure to include the inventory effect on profit as a separate line item in your value-stream income statement Required: Consider Levine's two value streams as profit centers, and use the contribution income statement as a guide to develop a value stream income statement for the company See Exhibit 18.9.for an example of a contribution income statement in your solution replace the term controllable margin (in Exhibit 18. 9) with value stream prom! Be sure to include the inventory effect on profit as a separate line item in your value Stream income statement. 1 What is the effect of the inventory change (and in what direction) on the value stream profit of cell phones? F of the inventory chance 2 What is the value sueam profit of TVs? The va intan preteral TV