INFORMATION Radasys Limited operates a single retail outlet selling direct to the public. Profit statements for the first quarter and second quarter of the year are as follows:

Quarter 1 Quarter 2 Sales 800 000 900 000 Cost of sales (500 000) (550 000) Gross profit 300 000 350 000 Selling and distribution (80 000) (90 000) Administration (150 000) (150 000) Net profit 70 000 110 000

2.1 Use the high-low method to identify the behaviour of the following:

2.1.1 Cost of sales (2 Marks)

2.1.2 Selling and distribution costs (2 Marks)

2.1.3 Administration costs