Gallop Corporation prepared the following report for the first quarter of this year: $6,480,000 3,262,000 3,218,000 Sales (@ $2,700 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,058,400 1,070,000 2,128,400 $1,089,600 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 $1,222,000. Of the selling expenses, 20% was variable with respect to the number of units. All of the administrative expenses were fixed. Required: 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.) Y = Cost of goods sold Selling expenses per quarter per quarter 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