Gallop Corporation prepared the following report for the first quarter of this year: Sales (@ $2,800 per unit) $?,840,00 Less: Cost of goods sold 4,139,520 Gross margin 3,?00,480 Less: Selling expenses $1,254,400 Administrative expenses 1,000,000 2,254,463 Income $1,445,080 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 forthe quarter amounted to $1,344,000. - l{Zirtthe 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 Selling expenses Y = _II_ _II_ 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