9 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 For the Three Months Ended September 30 eBook Sales in units Sales Cost of goods sold Ask Print References Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense July 5,750 August 6,250 September 6,750 $ 632,500 $687,500 $ 742,500 379,500 412,500 253,000 275,000 445,500 297,000 28,600 28,600 28,600 57,500 60,900 64,300 105,000 111,700 118,400 7,700 24,600 223,400 7,700 7,700 $29,600 24,600 233,500 $ 41,500 24,600 243,600 $53,400 Total selling and administrative expenses Net operating income Required: I 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 6,750-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below.