based on the below, answer A,B

Class exercise - Managerial Accounting and Cost Concepts (1 mark) 1. Cosgrove, Inc., is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below: Cosgrove Company Traditional Format Income Statement For the Three Months Ended June 30 April May June Sales in units.. 3,000 3,750 4,500 Sales revenue ........ $420,000 $525,000 $630,000 Cost of goods sold. 168,000 210,000 252,000 252,000 315,000 378,000 Selling and administrative expenses: Shipping expense .... 44,000 50,000 56,000 Advertising expense.. 70,000 70,000 70,000 Salaries and commissions....... 107,000 125,000 143,000 Insurance expense ...... 9,000 9,000 9,000 Depreciation expense ......... 42,000 42,000 42,000 Total selling and administrative expense ...... 272,000 296,000 320,000 Net operating income (loss) ....... - . . . ... $( 20.000) $ 19.000 $ 58,000 Required: a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into variable and fixed elements. (Use unit sales as the activity measure.) State the cost formula for each mixed expense. b. Compute the company's contribution margin for May