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 $30 per unit sold $180,000 per quarter 7% of sales Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense De 90,000 per quarter $10,000 per quarter $60,000 per quarter preciation 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 Units Sold Quarter Year 1: Expense First Second Third Fourth 26,000 170,000 28,000 185,000 33,000 227,000 29,000190,000 Year 2: First Second Third Fourth 27,000 180,000 30,000 195,000 $242,000 37,400 218,000 40,400 Required: I. 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 $60 per unit. Prepare a contribution format income statement for the quarter