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 Advertising expense Sales commissions Shipping expense Administrative salaries $27 per unit sold $184,000 per quarter 7% of sales $94,000 per quarter $10,400 per quarter $64,000 per quarter Insurance expense Depreciation expense 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 Quarter Units Sold Year 1: $ 174,000 $ 189,000 $ 231,000 $ 194, 000 First 30,000 32,000 37,000 33,000 Second Third Fourth Year 2: First $ 184,000 $ 199,000 $ 246, 000 $ 222,000 31,000 34,000 44,400 41,400 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 37,000 units at a selling price of $55 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. In the first quarter of Year 3, the company plans to sell 37,000 units at a selling price of $55 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