Alden Company has decided to use a contribution format income statement for internal planning purposes. The company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of goods sold $29 per unit sold Advertising expense $179,000 per quarter Sales commissions 8% of sales Administrative salaries $89,000 per quarter Shipping expense ? Depreciation expense $59,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters are given below: Quarter Units Sold Shipping Expense Year 1: First 25,000 $169,000 Second 27,000 $184,000 Third 32,000 $226,000 Fourth 28,000 $189,000 Year 2: First 26,000 $179,000 Second 29,000 $194,000 Third 37,000 $241,000 Fourth 34,000 $217,000 Management would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. Required: 1. Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above. (5 marks) (Omit the "$" sign in your response.) Please provide supporting calculations in the box that follows: Y = $ + $ X 2. In the first quarter of Year 3, the company plans to sell 33,000 units at a selling price of $59 per unit. Prepare a contribution format income statement for the quarter. (8 marks (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Please provide supporting calculations in the box that follows: Alden Company Budgeted Income Statement For the First Quarter of Year 3 $ Variable expenses: $ Total variable expenses Fixed expenses: Total fixed expenses $