Lo w Popular Madyboard the Uni -Touch Apple Cloud Yahoo D D Miden 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: $25 per unit sold $182,000 per quarter 8% of sales Cost of good sold Advertising expense Sales commissions Shipping expense Allanos Insurance expense Depreciation expense $92.000 per quarter $10.200 per quarter $62,000 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 Units Bold Expense 28.000 30.000 35.000 31.000 $172.000 $187.000 $229.000 $192.000 29.000 32.000 Second 12.000 $197.000 $235.000 $ 211,000 Fourth 37,600 Mldon 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 Units Sold 40.000 Shipping Expense 235.000 172.000 High activity level Low activity level Change Variable cost per unit Fbed cost element se touch Apple Coud ahoo 2. In the first quarter of Year 3, the company plans to sell 33,000 units at a selling price of $56 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 iable expenses Total variable expe Fixed expenses Total fixed expenses