1.

August 6,500 $ 617,500 370, 500 247,000 September 7,000 $ 665,000 399,000 266,000 For the Three Months Ended September 30 July Sales in units 6,000 Sales $570,000 Cost of goods sold 342,000 Gross margin 228,000 Selling and administrative expenses: Advertising expense 26,200 Shipping expense 58,000 Salaries and commissions 110,000 Insurance expense 8,450 Depreciation expense 17,900 Total selling and administrative expenses 220,550 Net operating income 7,450 26,200 61,600 116,800 8,450 17,900 230,950 $ 16,05 26,200 65,200 123,600 8,450 17,900 241, 350 $ 24,650 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 7,000-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round the Variable cost per unit to 1 decimal place.) Fixed Cost Formula Variable Cost per unit Y = per unit Y = Required 1 Required 2 Required 3 Redo the company's income statement at the 7,000-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses 0 0 Fixed expenses 0 S 0