4 10 points Morrisey & Brown, Limited, of Sydney is a merchandising company 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: Morrisey & Brown, Limited Income Statements Selling and administrative expenses: For the Three Months Ended September 30 eBook Sales in units Sales July 7,750 August 8,250 September 8,750 Print Cost of goods sold Gross margin $ 775,000 465,000 310,000 $ 825,000 495,000 330,000 $ 875,000 525,000 350,000 References 28,200 28,200 28,200 89,500 94,500 99,500 140,000 147,500 155,000 7,200 21,600 286,500 7,200 7,200 21,600 299,000 21,600 311,500 $ 23,500 $ 31,000 $ 38,500 Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 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 8,750-unit level of activity using the contribution format. Check my work