In the first quarter of Year 3, the company plans to sell 43,000 units at a selling price of $60 per unit. Prepare a contribution format income statement for the quarter. What is the shipping expense?

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. Io have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Formula Cost Cost of good sold $31 per unit sold $187,000 per quarter Advertising expense Sales commissions 7% of sales Shipping expense $97,000 per quarter Administrative salaries $10,700 per quarter Insurance expense Depreciation expense 67,000 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: Shipping Units Sold Expense Quarter Year 1: 33,000 177,000 First 35,000 192,000 Second Third 40,000 $234,000 Fourth 36,000 $197,000 Year 2: 34,000 $187,000 First 37,000 $202,000 Second Third 48,750 $240,000 Fourth 45,750 $216,000 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