Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses (in British pounds) for the last three months are given below. Arnall Ltd Comparative Income Statements For the Three Months Ended June 30 Apr May June Sales in units 200 4,600 6.300 f 204,000 782,000 1,071,000 Sales revenue 92,400 354,200 485,100 Cost of goods sold Gross margin 585,900 111,600 427.800 Selling and administrative expenses: 30,000 81,000 106,500 Shipping expense 42,000 42,000 Advertising expense 42,000 82,800 215,400 281,700 Salaries and commissions Insurance expense 7,700 7,700 7,700 37,000 37,000 37,000 Depreciation expense 383,100 Total selling and administrative expenses 199,500 474.900 (87,900) 44,700 111,000 Net operating income (loss) (Note: Arnall Ltd.'s income statement has been recast in the functional format common in the United States. The British currency is the pound, denoted by E.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed