Required: Consider Levine's two value streams as prot 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 margln {in Exhibit 18.9} with value-stream prot. Be sure to include the inventory effect on prot as a separate line item in your value-stream income statement I. What is the effect ofthe inventory change [and in what direction] on the value stream prot of cell phones? :l:l 2. What is the value stream profit of TVs? Levine lCompany is a manufacturer of very inexpensive cell phones and television sets. The company uses recycled parts 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 nancial performance. Levine uses value streams to study the protability of its two main product groupsr cell phones and TVs. Information about nished goods inventory, sales, production, and average sales price follows: Cell Phone Group TV Group Units Beginning inventory 3,?69 8,?66 Price S 1?5 S 225 Sold 16, gas 1?, 393 Budgeted and actual production 17,469 16,?96 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. Levine considers all traceable xed costs to be controllable by the manager of each group. Also, Levine's value stream shows operating income determined by the full costing method; the difference from the traditional full costing income statement is that the effect on income from a change in inventory is shown as a separate item on the valuestream income statement Cell Phone Group N Group Unit variable costs Manufacturing 5 161 5 136 Selling and administrative 5 5 Traceable fixed costs Manufacturing 343,969 344,926 Selling and administrative 134,969 134,996 Nontraceable fixed costs Manufacturing Selling and administrative Total 5 592, 329 268, am 84, ass :8, sea