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 $ 30.000 Cost of goods sold 168.000 210,000 252.000 Gross margin 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 Depreciation expense 42.000 42,000 42,000 Total seling and administrative expense 272,000 296.000 320,000 Net operating income (10) $ (20,000) $ 190.000 $ 58,000 Required: 3-1. Determine which expenses are med. (select all that apply) Advertising Insurance Depreciation expenses are forced 8 Shipping Salaries and Commissions Expenses are med a-2. Calculate the variable and foed elements (Use unit sales as the est formula for each mixed expense 2 $ 4 3 5 6 & 7 8 9 0 Q W E R T C Y o P S D F G H. N C V B Z M ge command a-2. Calculate the variable and fixed elements. (Use unit sales as the activity measure.) State the cost formula for each mixed expense. Shipping Expense per unit Variable cost Fixed cost Cost formula YD Salaries and Commissions perunt Variable cost Fxed cost Cost formula t 90 38 2 3 $ 4 % 5 A 6 & 7 8 9 Q W E R T Y U o s D F G T J K L N V B N M b. Compute the company's contribution margin for May. Contribution margin