1. Using the high-low method, determine a cost formula for shipping costs. Total Cost Units High level of activity Low level of activity Change in activity Variable cost per unit Fixed cost portion: Total cost at high level of activity Less: Variable cost element Total fixed cost 2. Prepare a contribution margin income statement for Quarter 1 of 2024. Jay Corporation Budgeted Income Statement For 2024, Quarter 1 Sales Variable expenses: Cost of goods sold Sales commissions Shipping expense Total variable expenses Contribution margin Fixed expenses: Adminstrative salaries Rent expense Shipping expense Depreciation expense Total fixed expenses Net operating incomeJay Corporation has decided to prepare contribution income statements for internal planning. Budgeted information for Quarter 1 of 2024: Sales in units 17,000 Sales price per unit 548.00 After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) $29.00 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) $45,000 Rent Expense (per quarter) $27,000 Depreciation Expense (per quarter) $36,000 Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Total Cost Units Quarter 1 $67,000 12,500 Quarter 2 $94,000 21,000 Quarter 3 589,800 13,800 Quarter 4 $92,600 20,000 2023 Quarter 1 $72,500 13,700 Quarter 2 $80,000 14,000 Quarter 3 $84,000 14,300 Quarter 4 $100,000 22,500 Use the data to answer the following. (Use cells A4 to C26 from the given information to complete this question. All answers should be input and displayed as positive values.)Jay Corporation has provided data from a two-year perlod to ald in planning. The Controller has asked you to prepare a contribution format Income statement. Budgeted information for Quarter 1 of 2024: Sales in units 17, 080 Sales price per unit $ 48.80 After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) $ 29.00 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) $ 45,000 Rent Expense (per quarter) $ 27,000 Depreciation Expense (per quarter) $ 36,090 Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Total Cost Units Quarter 1 $ 67, 080 12, 580 Quarter 2 $ 94, 030 21, 080 Quarter 3 $ 89, 800 13, 860 Quarter 4 $ 92, 600 20, 080 2023 Quarter 1 $ 72,500 13, 780 Quarter 2 $ 80, 080 14, 080 Quarter 3 $ 84, 800 14,380 Quarter 4 $ 180, 080 22, 560 Required: Use the data to answer the following. 1. Using the high-low method, determine a cost formula for shipping costs. 2. Prepare a contribution margin Income statement for Quarter 1 of 2024