Gallop Corporation prepared the following report for the first quarter of this year: $9,600,000 4,115,000 5,485,000 Sales (@ $3,200 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,074,000 1,100,000 2,174,000 $3,311,000 Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: Fixed portion of the cost of goods sold for the quarter amounted to $1,625,000. Of the selling expenses, 20% was variable with respect to the number of units. All of the administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Cost of goods sold Y= + per quarter per quarter XX Selling expenses Y = + 2. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) GALLOP CORPORATION Income Statement For the First Quarter of this Year Less: Variable costs Less: Fixed expenses