5 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 MORRISEY & BROWN, LTD. Income Statements For the four Quarters Ending December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 4,100 4,300 5,360 4,900 Sales revenue A$ 480,000 $430,000 $36.000 A$490,000 Less: Cost of goods sold 288.000 258,000 321,600 294,000 Gross sarcin 192,000 172.000 214,400 196, de Lost Operating expenses Advertising expense 21,300 Shipping expense 21,360 21,300 21,30 Salaries and concisions 35,200 37,200 41,440 37. 14 79, Insurance expense 78,6 91,320 86,740 5,300 6,300 6, Jee Depreciation expense 6.30 15.300 15,300 15,100 Total operating expenses 15.00 157.900 158,700 175,660 166,82 income A$ 34,100 AS 13,300 A$ 38,740 A$ 29,220 INote Morrisey & Brown, Lid's Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$) Required: 1. Identity each of the company's expenses including cost of goods sold as being variabw, fred, or med Chat Cost of good FROM nied Ted Saved 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements 5. Fixed Cost Variable Cost per unit AS AS AS AS AS per unit per unit AS 2-b. Using the high-low method, state the cost formula for each mixed expense YAS 223 EXE Y AS YAS 3. Redo the company's income statement at the 5,360-unit level of activity using the contribution format 5 MORRISEY & BROWN, LTD. Contribution Margin Income Statement For the Quarter Ended September 30 Sales in units AS Less: Variable expenses: AS 0 0 Less: Fixed expenses: 0 AS O 5 4. Assume that the company's sales are projected to be 4,650 units in the next quarter. Prepare a contribution margin income statement MORRISEY & BROWN. LTD. Contribution Margin Projected Income Statement For the Quarter Ended March 31 Sales in units AS Less: Variable expenses AS 0 Less: Placed expenVOS 0 0 A5