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I need the answer for the four blank boxes. Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it

image text in transcribedimage text in transcribedimage text in transcribedI need the answer for the four blank boxes.

Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of good sold $22 per unit sold Advertising expense $172,000 per quarter Sales commissions 5% of sales Shipping expense Administrative salaries $82,000 per quarter Insurance expense $9,200 per quarter Depreciation expense $52,000 per quarter ? Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Quarter Year 1: First Second Third Fourth Year 2: First Second Third Shipping Units Sold Expense 18,000 $162,000 20,000 $ 177,000 25,000 $ 219,000 21,000 $ 182,000 19,000 22,000 30,000 $ 172,000 $ 187,000 $234,000 Milden Company's president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. Required: 1. Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above. High activity level Low activity level Change Shipping Units Sold Expense 30,000 $ 234,000 18,000 162,000 12,000 $ 72,000 Variable cost per unit Fixed cost element $ $ 6 per unit 54,000 Y= 54,000 $ 6X 2. In the first quarter of Year 3, the company plans to sell 25,000 units at a selling price of $52 per unit. Prepare a contribution format income statement for the quarter. (Do not round your intermediate calculations.) Milden Company Budgeted Contribution Format Income Statement For the First Quarter, Year 3 $ 1,300,000 Variable expenses: Cost of goods sold $ 550,000 Sales commissions 65,000 Shipping expense 150,000 765,000 535,000 Total variable expenses Contribution margin Fixed expenses: Advertising expense Shipping expense Administrative salaries Insurance expense Depreciation expense 172,000 54,000 82,000 9,200 52,000

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