Gallop Corporation prepared the following report for the first quarter of this year. $6,480, eee 3,232, eee 3,248, eee Sales (@ $2,700 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income -18:51 $1,044,000 1,040,000 2,084, eee $1,164, eee 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 $1,024,000. 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.) Y = $ + $ 920.00 X Cost of goods sold Selling expenses 1,024,000 per quarter per quarter Y = + $ 87.00 X 2. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) GALLOP CORPORATION Income Statement Prev 1 of 28 Next > 8:38 2. Redo the above income statement using a contribution margin approach(Do not round intermediate calcula GALLOP CORPORATION Income Statement For the First Quarter of this Year Sales $ 6,480,000 Less: Variable costs Cost of goods sold Selling expenses $ 0 6,480,000 Contribution margin Less: Fixed expenses Cost of goods sold Selling expenses Administrative expenses 0 Net income $ 6,480,000 LE Prev 1 of 28 Next ... LUB TRIAIS search o i W g