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 April May June Sales in units 3.000 6,300 8.000 E 600.000 258.000 1,260,000 541.80O E 1,600.000 688,000 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses 342,000 718,200 912,000 59.400 60,000 193.000 6.600 34,500 108.900 60,000 381.300 6,600 34,50O 134.400 60,000 448.000 6.600 34,50O Shipping expense Salaries and commissions Total selling and administrative expenses 353.500O 571.300 683.500 Net operating income (loss) E (11.500) 2 148,900 2 228.500 (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. Expenses Classification Cost of goods sold Shipping expense Salaries and commissions