1 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 001245 Sales in units Sales revenue Less: Cost of goods sold Gross margin HORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 11 Quarter 1 Quarter 2 Quarter 3 Quarter A 5,100 4,600 A$510,000 A$460,000 306,000 276,000 204,000 5,200 5,720 A$572,000 A$520,000 343,200 312,000 look 184,000 228,500 200,000 Advertising expense Less: Operating expenses: 21,600 21,600 21,600 21,000 Shipping expense 36,400 38,400 42,500 38,200 Salaries and commissions 81,600 79,200 92,640 58,400 Insurance expense 6,600 6,600 6,600 6,600 Depreciation expense 15,600 15,600 15,600 15,600 Total operating expenses) 161,000 161,400 179,320 170.56 A$ 49,450 A$ 37,440 Net Income AS 42,200 A$ 22,600 (Note: Morrisey & Brown, Ltd.'s Australian-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. Expenses Cost of goods sold Classification Variable Advertising expense Fixed Shipping expense Moxed Salaries and commissions Mixed Fixed Insurance expense OB 0 6 P B