Connor Company has decided to use the contribution approach to the income statement internally for planning purposes. The company has analyzed its expenses and developed the following cost formulas: Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters are given below: Management would like a cost formula derived for shipping expense so that a budgeted income statement using the contribution approach can be prepared for the next quarter. Using least squares regression, estimate a cost formula for shipping expense. (Identify intercept, slope and R2) In the first quarter of Year 3, the company plans to sell 25,000 units at a selling price of $60 per unit. Prepare an income statement for the quarter using the contribution format