Hello, can someone please help me. I'm new to accounting and i'm having lots of trouble. i would really appreciate your help
Problem 6 - 4 Examining Cost Behaviour ; High- Low Analysis ; Contribution Margin Income Statement ( LOT - CC 1, 3 , 6; 102 - CC9; LO3 - CC 12 ) Morrisey & Brown , Led ., 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 :` MORRISEY & BROWN , LTD Income Statements For the Three Months Ending September 30 July AUGUST September Sales in units 5, 000 5, 500 6, 0.00 Sales revenue A$ 520, 000\\ A$ 57 2, 000\\ A$ 624, 000 Less : Cost of goods sold 310, 000 341 , 000 372, 000 Gross margin 210, 000 231, 000 252, 000 Less : Operating expenses" Advertising Expense* 22,000 22,000 22, 000 Shipping expense* 38, 000 40, 000 $ 1, 8.00 Salaries and commissions $4, 000 90, 000 95, 8.00 Insurance expense* 7,000 7,000 7, 000 Depreciation EXPENSE* 16, 000 16, 000 16, 000 Total operating expenses 167, 000 175, 000 182, 600 Net income A$ 43,000 A$ 56, 000 A$ 69, 400 ( Note : Morrisey & Brown , Led .'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 mixe Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. (Do not round intermediate calculations. Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) Variable Cost Fixed Cost A$ per unit | AS A$ per unit | A$ A$ per unit |A$2 - 6 . Using the high- low method , state the cost formula for each mixed expense . ( Do not round intermediate calculations . Round the "*" answers to ? decimal places . ! Y =\\ A` A` $ V | = A Y =\\ A`3. Redo the company's income statement at the 6,000-unit level of activity using the contribution format. MORRISEY & BROWN, LTD. Income Statement For the Month Ended September 30 Sales in units 6,000 Less: Variable expenses: AS Less: Fixed expenses: AS