Frank Company Assignment Income Statements For the 3 months ending September 30, 2020 July 4,000 Sales in units August 4,500 September 5,000 $ 400,000 $ 450,000 $500,000 240,000 270,000 300,000 160,000 180,000 200,000 Sales Cost of goods sold Gross Margin Selling & Administrative Expenses: Advertising Shipping Salaries and commissions Insurance Depreciation Total Selling & Administrative Expenses 21,000 34,000 78,000 6,000 15,000 154,000 21,000 36,000 84,000 6,000 15,000 162,000 21,000 38,000 90,000 6,000 15,000 170,000 Net Operating Income $ 6.000 5 18.000 30.000 Required: 1. Use the high low method to determine the cost equation for each item on the income statement. 2. Using the cost equations, create the contribution income statement for 5,000 units. 3. Using the cost equations, create the contribution income statement for 4,800 units