Gallop Corporation prepared the following report for the first quarter of this year. $8,680,000 3,342,000 5,338,000 Sales ( $3,100 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,099,000 1,150,000 2,249,000 $3,089,000 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 $1,046,000. . 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 = X Cost of goods sold Selling expenses per quarter per quarter Y- X 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