roblem 3-11 Contribution Format versus Traditional Income Statement (LO3] lome Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at ne retail level. The televisions sell, on average, for $1.700 each. The average cost of a television from the manufacturer is $1260 Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Cost Formula $ 1,345 per month 40 per television sold $ 3,320 per month, plus 2% of sales $ 422 per month $ 3,830 per month Costs Selling: Advertising Delivery of televisions Sales salaries and commissions Utilities Depreciation of sales facilities Administrative: Executive salaries Depreciation of office equipment Clerical Insurance $ $ $ $ 8,750 per month 860 per month 1,530 per month, plus $54 per television sold 520 per month 529 During April, the company sold and delivered 207 televisions, Required: Next 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 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 of entribution marcin 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 variable expenses Fixed expenses: Total fixed expenses