Gallop Corporation prepared the following report for the first quarter of this year: $8,120,000 3,252,000 4,868,000 Sales (@ $2,900 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,052,800 1,060,000 2,112,800 $2,755,200 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 $1,040,000. 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= + Cost of goods sold Selling expenses per quarter per quarter + XX 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