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 $23 per unit sold Advertising expense $173,000 per quarter Sales commissions 6% of sales Shipping expense ? Administrative salaries $83,000 per quarter Insurance expense $9,300 per quarter Depreciation expense $53,000 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 Sold Shipping Expense Year 1: First 19,000 $ 163,000 Second 21,000 $ 178,000 Third 26,000 $ 220,000 Fourth 22,000 $ 183,000 Year 2: First 20,000 $ 173,000 Second 23,000 $ 188,000 Third 33,400 $ 235,000 Fourth 30,400 $ 211,000 Milden Companys 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. In the first quarter of Year 3, the company plans to sell 27,000 units at a selling price of $53 per unit. Prepare a contribution format income statement for the quarter. (Do not round your intermediate calculations.) NOTE!!!!!!!! ****** SHIPPING EXPENSE IS NOT 70,000!!!!!