Gallop Corporation prepared the following report for the first quarter of this year. $9,600,000 4,227,500 5,372,500 sales (@ $3,200 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,119,800 1,190,000 2,309,000 $3,063,580 Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analy following: Fixed portion of the cost of goods sold for the quarter amounted to $1,467,500. 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 "Verlable cost" places.) Y = S + S 920.00 X Cost of goods sold Selling expenses 1,467,500 per quarter 895,200 per quarter Y = S + 69 74.60 X 2. Redo the above income statement using a contribution margin approach. (Do not round Intermediate calculeti GALLOP CORPORATION Income Statement For the First Quarter of this Year Sales Less: Variable costs Cost of goods sold S 2,760,000 Selling expenses 223,800 $ 9,600,000 S 2.983,800 6,616,200 Contribution margin Less: Fixed expenses Cost of goods sold Selling expenses S 1,467,500 895,200