Gallop Corporation prepared the following report for the first quarter of this year: UT $8,400,000 3,222,000 5,178,000 10 points Sales (@ $3,000 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,038,800 1,030,000 2,068,800 $3,109,200 02:07:35 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 $1,122,000. 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 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.) 5 Y = + x Cost of goods sold Selling expenses per quarter per quarter Y = + X 10 points 02:07:30 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 2. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) 5 GALLOP CORPORATION Income Statement For the First Quarter of this Year 10 points Less: Variable costs 02:07:27 Less: Fixed expenses