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 Formula $29 per unit sold $179,000 per quarter 8 of sales Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $89,000 per quarter $9,900 per quarter $59,000 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: Shipping Expense Units Sold Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 25,000 27,000 32,000 29,000 $ 169,000 $ 184,000 $ 226,000 $ 189,000 26,000 29,000 37,000 34,000 $ 179,000 $ 194,000 $ 241,000 $ 217,000 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 33,000 units at a selling price of $59 per unit. Prepare a contribution format Income statement for the quarter