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 of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $26 per unit sold $183,000 per quarter 7% of sales ? $93,000 per quarter $10,300 per quarter $63,000 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: Quarter Year 1: First Second Third Fourth Shipping Expense Units Sold 29,000 31,000 $ 173,000 $ 188,000 36,000 $ 230,000 32,000 $193,000 30,000 $183,000 33,000 $198,000 47,000 $245,000 44,000 $221,000 Year 2: First Second Third Fourth 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 35,000 units at a selling price of $56 per unit. Prepare a contribution format income statement for the quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2