Gallop Corporation prepared the following report for the first quarter of this year:

Sales $($@ $$2,900$ per unit$)$ $ $8,120,000$

Less: Cost of goods sold $3,252,000$

Gross margin $4,868,000$

Less:

Selling expenses $ $1,052,800$

Administrative expenses $1,060,0002,112,800$

Income $ $2,755,200$

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 $$1,040,000.$

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.$)$

$2.$ Re$-$do and prepare the above income statement using a contribution margin approach. $($Do not round intermediate calculations.$)$