bled: Assignment 2 i Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm that is the sole distributor of a product popularity among Australian consumers. The company's income statements for the three most recent monti Sales in units. Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income For the Four Quarters Ending December 31 Quarter 1 Quarter 2 5,500 5,000 A$550,000 A$500,000 330,000 300,000 220,000 200,000 MORRISEY & BROWN, LTD. Income Statements Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Saved 22,000 40,000 80,000 7,000 16,000 165,000 Quarter 3 6,200 Classification A$620,000 372,000 248,000 22,000 38,000 84,000 7,000 16,000 167,000 A$ 53,000 A$ 35,000 A$ 63,800 22,000 44,800 94,400 7,000 16,000 184, 200 (Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast into the format comm Australian dollar is denoted by A$.) Quarter 4 5,600 A$560,000 336,000 224,000 Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. 22,000 39,800 90,800 7,000 16,000 175,600 A$ 48,400

Morrisey \& Brown, Ltd., of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: (Note: Morrisey \& Brown, Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. 2-b. Using the high-low method, state the cost formula for each mixed expense. 3. Redo the company's income statement at the 6,200-unit level of activity using the contribution format. 4. Assume that the company's sales are projected to be 5,000 units in the next quarter. Prepare a contribution margin income statement