All answers must be entered as a formula. Click OK to begin. OK D E F 1 To aid in planning. Jay Corporation is preparing a contribution format income statement. 1 3. Budgeted information for Quarter 1 of Year 3: Sales in units 5 Sales price per unit 17.000 48.00 4 S 6 coed BO Pin ce 7 After analyzing expenses, the company has determined the following cost patterns. 8 Cost of goods sold 29.00 per unit 9 Sales commissions 950% per dollar of sales 10 11 Administrative salaries S 45,000.00 per quarter 12 Rent expense $ 27.000.00 per quarter 13 Depreciation expense $ 36,000.00 per quarter 14 15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the last eight quarters are: 17 Year Total Shipping Cost Quarter 1 $ 67,000.00 12.500 19 Quarter 2 s 94.000,00 21.000 20 Quarter 3 s 89.800.00 13 800 21 Quarter 4 5 92.600.00 20.000 2 Year 2 arter S 72 500.00 13.00 Sheet1 16 Units TE + 100 E READY Attemptis) B D E F C 22 Year 2 23 Quarter 1 S 72,500.00 13,700 24 Quarter 2 S 80,000.00 14,000 25 Quarter 3 S 84,000,00 14,300 26 Quarter 4 $ 100,000.00 22,500 27 28 Use the data to answer the following. 29 30 1. Using the high-low method, determine a cost formula for shipping expenses. 31 32 Total Shipping Cost Units 33 High level of activity 34 Low level of activity 35 Change in activity 36 37 Variable cost 38 39 Compute the fixed cost portion using the high level of activity, 40 Total cost at high level of activity 41 Less: Variable cost element 42 Total fixed cost per unit 43 44 2. Prepare a contribution format income statement for Quarter 1 of Year 3. 45 Sheet1 2 READY Attempt(s) 100% Show Me Mint B D E F 45 46 47 48 Jay Corporation Budgeted Contribution Format Income Statement For Year 3, Quarter 1 49 30 Sales 51 Variable expenses 52 Cost of goods sold 53 Sales commissions 54 Shipping expense 55 Total variable expenses 56 Contribution margin 57 Fixed expenses 58 Administrative salaries 59 Rent expense 60 Shipping expense Depreciation expense 62 Total fixed expenses 63 Net operating income 64 61 65 66 67 Sheet1 READY Attempt(s) 100%