Gallop Corporation prepared the following report for the first quarter of this year, 37,200,000 3.322,000 3,578,000 Sales ($3,000 per unit) Lasst cost of soods sold dross margin Less: Selling expenses Administrative expenses Income $1,053,400 1,130.000 2,238,400 $1,650,00 Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed me following Fixed portion of the cost of goods sold for the quarter amounted to $1,258,000 . Of the selling expenses, 20% was variable with respect to the number of units . All of the administrative expenses were fixed to 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.) x x per quarter per quarter Y = Y = Cost of goods sold Selling expenses 2. Redo the above income statement using a contribution margin approach (Do not found intermediate calculations.) GALLOP CORPORATION Income Statement For the First Quarter of this Year Less: Variable costs 0 $ 0 Less: Fixed expenses 0 0 $ $7,200,000 3,322,000 3,878,000 Sales (@ $3,000 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,088,400 1,130,000 2,218,400 $1,659,600