H 0:26:19 Book Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow Sales in units Sales revenue. MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Less: Cost of goods sold: Gross margin Less: Operating expenses: Advertising expense) Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income 6,100 Quarter 1 Quarter 2 5.600 A$610,000 A$560,000 Quarter 6,920 Quarter 4 6,200 366,000 244,000 336,000 224,000 A$692,000 A$620,000 415,200 372,000 276,000 248,000 22,000 22.600 22,600 22,000 40,400 42,400 47,600 42,000 67,600 01.200 97,040 94,2 7,600 7,400 7,600 16,600 16,600) 16,600 16,600 174,800 170,400 191,520 143,160 A$ 69,200 A$ 53,000 A$ 55,280 AS 64,540 (Note: Morrisey & Brown, Ltd's Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed Expenses Cost of goods sold Classification 2552 ok Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 2-6. Using the high-low method separate each mixed expense into variable and fixed elements. Variable Cost Fixed Cost AS per unit LAS 4 0025 Seved 2-a. Using the high-low method, separate each mixed expense into variable and foxed elements 222 Variable Cost per unit per unit per unit 222 Fixed Cost 2-b. Using the high-low method, state the cost formula for each mixed expense. YAS AS YAS AS YAS AS < Prev 4 of 4 Next Help Save & Ext Submit 4 3. Redo the company's income statement at the 6,920-unit level of activity using the contribution format MORRISEY & BROWN, LTD Contribution Margin Income Statement For the Quartet Ended September 30 00:25:26 Salus in units Less Variable expenses eBook Less Floed expenses A$ AS AS < Prev 4 of 4 Next 341PM Saved Help Save & Exit Submit 4 4. Assume that the company's sales are projected to be 5.300 units in the next quarter. Prepare a contribution margin income statement MORRISEY & BROWN, LTD. Contribution Margin Projected Income Statement For the Quarter Ended March 31 00255 Sales in units Less Variable expenses eBook Less Fixed expenses) AS < Prev AS AS 4 of 4 Next