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 $24 per unit sold Advertising expense $174,000 per quarter Sales commissions 8% of sales Shipping expense ? Administrative salaries $84,000 per quarter Insurance expense $9,400 per quarter Depreciation expense $54,000 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 Quarter Units Sold Expense Year 1: First 20,000 $ 164,000 Second 22,000 $179,000 Third 27,000 $221,000 Fourth 23,000 $ 184,000 Year 2: First 21,000 $174,000 Second 24,000 $189,000 Third 38,000 $236,000 Fourth 35,000 $ 212,000 , Required: 1. Using the highlow 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 29,000 units at a selling price of $54 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 Using the high-low method, estimate a cost formula for shipping expense in the form Y = a + bX. (Round the Variable cost per unit to 2 decimal places.) -:-:- In the rst quarter of Year 3, the company plans to sell 29,000 units at a selling price of $54 per unit. Prepare a contribution format income statement for the quarter. Variable expenses: Total variable expenses Fixed expenses: Total variable expenses Fixed expenses: Total fixed expenses