Gallop Corporation prepared the following report for the first quarter of this year: Sales (@ $2,800 per unit) $7 , 840, 000 Less: Cost of goods sold 4, 139,520 Gross margin 3,700, 480 Less: Selling expenses $1, 254, 400 Administrative expenses 1, 000, 000 2, 254, 400 Income $1, 446, 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 for the quarter amounted to $1,344,000. . 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.)-II__ -I__I 2. Redo the above income statement using a contribution margin approach. {Do not round intermediate calculations] Less: Variable casts Less: Fixed expenses