ay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement.

Budgeted information for Quarter 1 of 2024:
Sales in units	17,000
Sales price per unit	$ 48.00

After analyzing expenses, the company has determined the following cost patterns.

Cost of Goods Sold (per unit)	$ 29.00
Sales Commissions (per dollar of sales)	9.50%
Administrative Salaries (per quarter)	$ 45,000
Rent Expense (per quarter)	$ 27,000
Depreciation Expense (per quarter)	$ 36,000

Shipping has been determined to be a mixed cost with the following total costs and units:

2022	Total Cost	Units
Quarter 1	$ 67,000	12,500
Quarter 2	$ 94,000	21,000
Quarter 3	$ 89,800	13,800
Quarter 4	$ 92,600	20,000
2023
Quarter 1	$ 72,500	13,700
Quarter 2	$ 80,000	14,000
Quarter 3	$ 84,000	14,300
Quarter 4	$ 100,000	22,500

Required:

Use the data to answer the following.

Using the high-low method, determine a cost formula for shipping costs.

Prepare a contribution margin income statement for Quarter 1 of 2024.

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