Gallop Corporation prepared the following report for the first quarter of this year: $8,400,000 3,372,000 5,028,000 Sales (@ $3,000 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $1,106,000 1,180,000 2,286,000 $2,742,000 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 $1,132,000. 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.) Cost of goods sold Y= per quarter Selling expenses Y= per quarter 2. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) GALLOP CORPORATION Income Statement For the First Quarter of this Year Less: Variable costs Less: Fixed expenses