1 eBook Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm 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: Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income For the Four Quarters Ending December 31 Quarter 1 Quarter 2 5,700 5,200 A$570,000 A$520,000 342,000 312,000 228,000 208,000 MORRISEY & BROWN, LTD. Income Statements Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Quarter 3 6,440 A$644,000 386,400 257,600 22,200 22,200 22, 200 38,800 40,800 45,760 85,200 80,400 95,280 7,200 7,200 16, 200 169,600 16, 200 166,800 7,200 16, 200 186,640 A$ 58,400 A$ 41,200 A$ 70,960 (Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) Quarter 4 5,800 A$ 580,000 348,000 232,000 Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. Classification 22, 200 40,560 91,960 7,200 16, 200 178,120 A$ 53,880

Morrisey \& Brown, Ltd., of Sydney. Australia, is a merchandising firm 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: (Note Morrisey \& Brown, Ld's Australlan-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by AS) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed