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Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and

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Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas Cost Cost Formula Cost of good sold $31 per unit sold Advertising expense 5181,000 per quarter Sales comissions 6% of sales Shipping expense > Administrative salaries $91,000 per quarter Insurance expense $12, 1ee per quarter Depreciation expense $61,000 per quarter Because shipping expense is a mixed cost the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: Units sold Shipping Expense Quarter Year 11 Pirst Second Third Fourth Year 21 First Second Third Fourth 27,000 29,000 34,000 30,000 $ 171,000 $ 000 $ 220,000 $191,000 28,000 31,000 45,000 42,000 $ 161,000 $ 196,000 $ 243,000 $ 219,000 Required: 1. Using the high-low method, estimate a cost formula for shipping expense in the form Y = a +bX 2. In the first quarter of Year 3, the company plans to sell 37.000 units at a selling price of $61 per unit. Prepare a contribution format income statement for the quarter Required: 1. Using the high-low method, estimate a cost formula for shipping expense in the form Y = 3 + bx 2. In the first quarter of Year 3, the company plans to sell 37000 units at a selling price of $61 per unit. Prepare a contribution format income statement for the quarter. Complete this question by entering your answers in the tabs below. Required Required 2 Using the high-low method, estimate a cost formula for shipping expense in the form Y=+bx. (Round the Variable cost per unit to 2 decimal places.) Required 2 > Required 1 Required 2 In the first quarter of Year 3, the company plans to sell 37,000 units at a selling price of $61 per unit. Prepare a contribution format income statement for the quarter. Milden Company Budgeted Contribution Format Income Statement For the First Quarter, Year 3 Variable expenses Total variable expenses Fixed expenses Total fixed expenses

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