5A-7 (Algo) Cost Behavior; High-Low Method; Contribution Format Income Statement [LO5-10] 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 For the Three Months Ended September 30 Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income Required: July 5,250 $630,000 August 5,750 $690,000 378,000 414,000 September 6,250 $750,000 450,000 252,000 276,000 300,000 30,600 30,600 30,600 46,500 49,500 $2,500 93,000 99,500 106,000 10,200 10,200 10,200. 21,300 201,600 21,300 211,100 21,300 220,600 $ 50,400 $ 64,900 $ 79,400 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 6,250-unit level of activity using the contribution format. Required: 58,400 64,900 $ 79,400 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 6,250-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round the Variable cost per unit to 1 decimal place.) Variable Cost per unit Fixed Cost per unit Formu Required 1 Required 2 Required 31 Redo the company's income statement at the 6,250-unit level of activity using the contribution format. Variable expenses: Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Fixed expenses: < Required 2 0 0 $ 0 Required 3>