August 6,800 $ 630,000 378,000 252,000 September 6,500 $ 682,500 409,500 273,000 Incone Statements For the Three Months Ended September 30 July Sales in units 5,580 Sales $ 577,500 Cost of goods sold 346,500 Gross margin 231, eee Selling and administrative expenses: Advertising expense 24,200 Shipping expense 57,000 Salaries and commissions 104,000 Insurance expense 9,200 Depreciation expense 19,60e Total selling and administrative expenses 214, eee Net operating income $ 17,000 24,200 60,200 118,600 9, 200 19, 688 223, 8ee $ 28,200 24,280 63,400 117, 2ee 9, 2ee 19,6ee 233,600 $ 39,400 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx 3. Redo the company's income statement at the 6,500-unit level of activity using the contribution format. Required 1 Required 2 Required 3 By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. Expenses Classification Cost of goods sold Advertising expense Shipping exponse Salarios and commissions Insurance expenso Depreciation expense Requid Required 2 > Required 1 Required 2 Required 3 Using the high-low method, separate each mixed expense into vanable and fixed elements. Express the variable and fixed portions of each mix the form Y = a + bx. (Round the Vanable cost per unit to 1 decimal place.) Variable Cost Fixed Cost Formula por unit Y- per unit Y X Redo the company's income statement at the 6,500-unit level of activity using the contribution format: Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Variable expenses Fixed expenses