7 Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas: 1.9 points Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $26 per unit sold $176,000 per quarter 8% of sales ? $86,000 per quarter $9,600 per quarter $56,000 per quarter eBook Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: References Units Sold Shipping Expense Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth $ 166,000 $ 181,000 $ 223,000 $ 186,000 22,000 24,000 29,000 25,000 23,000 26,000 34,000 31,000 $ 176,000 $ 191,000 $ 238,000 $ 214,000 Required: 1. Using the high-low method, estimate a cost formula for shipping expense in the form Y = a +bX. 2. In the first quarter of Year 3, the company plans to sell 27,000 units at a selling price of $56 per unit. Prepare a contribution format income statement for the quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, estimate a cost formula for shipping expense in the form Y = a + bX. (Round the Variable cost per unit to 2 decimal places.) Y =