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 of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $25 per unit sold $182,000 per quarter 8% of sales $92,000 per quarter $10,200 per quarter 562,000 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 First Second Third Fourth 28,000 $172,000 30,000 $187,000 35,000 $229,000 31,000 $192,000 Year 2 First Second Third Fourth 29,000 $182,000 32.000 $197.000 40.600 $235,000 37 600 $211.000 Milden Company's president would like a cost formula derived for shipping expense so that a budgeted con 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 Variable cost per unit Fixed cost element per unit 2 in the first quarter of Year 3, the company plans to sel 33,00 units at a selling price of $55 per unit. Prepare a contribution format income statement for the quarter (Do not round your intermediate calculations.) pany Budgeted Contribution Format Income Statement For the First Quarter, Year 3 Variable expenses Total Variable expenses Fixed expenses