Answers need for highlighted boxes. Answers have to a formula not just numbers

DEF 1 Jay Corporation has decided to prepare contribution income statements for internal planning. 3 Budgeted information for Quarter 1 of Year 3: Sales in units 5 Sales price per unit 17,000 48.00 7 After analyzing expenses, the company has determined the following cost patterns 8 Variable Cost of Goods Sold (per unit) 29.00 9 Sales Commissions (per dollar of sales) 9.50% 11 12 Fixed Manufacturing Overhead (per quarter) Administrative Salaries (per quarter) Depreciation Expense (per quarter) $ $ $ 45,000.00 27.000.00 36,000.00 13 15 Shipping Cost has been determined to be mixed with the following costs for the past two years: $ 17 Year 1 Quarter 1 19 Quarter2 20 Quarter 3 Quarter 4 22 Year 2 23 Quarter 1 24 Quarter2 Total Cost 67,000.00 94,000.00 89,800.00 92,600.00 Units 12,500 21,000 13,800 20.000 $ $ 72,500.00 80,000.00 13,700 14,000 25 26 Quarter 3 Quarter 4 84,000.00 100,000.00 14,300 22,500 28 Use the data to answer the following. 30 1. Using the high-low method, determine a cost formula for shipping expenses. 32 Total Shipping Cost Units 33 High level of activity 34 Low level of activity 35 Change in activity 37 Variable shipping cost per unit per unit 38 39 Fixed shipping cost: (Note: please use the highest activity point to compute the total fixed cost.) 40 Total shipping cost at high level of activity 41 Less: Variable shipping cost at high level of activity 42 Total fixed shipping cost 43 44 2. Prepare a contribution margin income statement for Quarter 1 of Year 3. 45 Jay Corporation Budgeted Income Statement For Year 3, Quarter 1 50 Sales 51 Variable expenses: 52 Cost of goods sold 53 Sales commissions 54 Shipping expense (Variable portion) 55 Total variable expenses 56 Contribution margin 57 Fixed expenses: 58 Fixed Manufacturing Overhead | 59 Administrative Salaries 60 Shipping expense (Fixed portion) 61 Depreciation expense 62 Total fixed expenses 63 Net operating income