MORRISEY 8- BROWN, LTD. Income Statements For the Three Months Ending September 30 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income July 5,200 A$ 544,960 324,480 220,480 22,200 38,800 85,200 7,200 16,200 169,600 A$ 50,880 August 5,700 A$ 597,360 355,680 241,680 22,200 40,800 91,200 7,200 16,200 177,600 A$ 64,080 September 6,200 A$ 649,760 386.880 262,880 22,200 42,560 96,960 7,200 16,200 185,120 A$ 77,760 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. (Do not round intermediate calculations. Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) Variable Cost Fixed Cost A$ per unit A$ : A$ per unit A$ A$ per unit A$ 2-b. Using the high-low method, state the cost formula for each mixed expense. (Do not round intermediate calculations. Round the "X" answers to 2 decimal places.) Y= A$ + A$ X Y= A$ + AS X Y= A$ + A$ X3. Redo the company's income statement at the 6,200-unit level of activity using the contribution format. MORRISEY & BROWN, LTD. Income Statement For the Month Ended September 30 Sales in units 6,200 Sales revenue A$ Less: Variable expenses: : A$ Less: Fixed expenses: Advertising expense Shipping expense Salaries and commissions expense Insurance expense Depreciation expense Net income A$