Gallop Corporation prepared the following report for the first quarter of this year $8,120,000 3,312,000 4,808,000 Sales (@ $2,900 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,078,000 1,120,000 2,198,000 $2,610,000 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 $1,072,000 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.) Y = per quarter Cost of goods sold Selling expenses Y- per quarter 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 S 0 0 Less Foxed expenses 0 S 0