Gallop Corporation prepared the following report for the first quarter oftnis year: Sales (@ $2,866 per unit) $7,846,666 Less: Cost of goods sold 4,139,526 Gross margin 3,766,486 Less: Selling expenses $1,254,466 Administrative expenses 1,666,666 2,254,466 Income $1,446,686 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.) 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 X Selling expenses Y = per quarter X. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) Less: Variable costs Less: Fixed expenses