3) Redo the company's income statement at the 7,000-unit level of activity using the contribution format.

Identify each of the company's expenses (including cost of goods sold) as either a variable, fixed, or mixed cost. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. Redo the company's income statement at the 7,000-unit level of activity using the contribution format