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7 Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: Morrisey & Brown, Ltd. Income Statements 15.62 For the Three Months Ended Septemberr 30 polnts July 8,500 September August 9,000 Sales in units 9,500 Skipped Sales $900,000 850,000 950,000 570,000 Cost of goods sold Gross margin Selling and administrative expenses Advertising expense Shipping expense Salaries and commissions 510,000 540,000 340,000 360,000 380,000 ook 37,000 110,000 155,000 37,000 37,000 121,200 170,600 115,600 Print 162,800 10,500 Insurance expense Depreciation expense Total selling and administrative expenses References 10,500 17,000 329,500 10,500 17,000 17,000 342,900 356,300 $ 10,500 23,700 Net operating income 17,100 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y a bX 3. Redo the company's income statement at the 9,500-unit level of activity using the contribution format