Morrisey 8: Brown, Ltd., of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: MDRRISEY 8 am, LTD. Income Statements For the Four Quarters Endigg December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 5,300 4,800 5,950 5,400 Sales revenue $536,600 $436,600 $596,600 $546,600 Less: Cost of goods sold 313,600 233,600 352,600 324,600 Gross margin 212,600 192,600 233,400 216,600 Less: Operating expenses: Advertising expense 21,800 21,800 21,800 21,800 Shipping expense 32,200 39,200 43,840 39,640 Salaries and commissions 32,800 29,600 93,520 39,640 Insurance expense 6,800 6,800 6,800 6,800 Depreciation expense 15,800 15,800 15,800 15,800 Total operating expenses 164,400 163,200 131,250 123,630 Net income $ 42,600 $ 23,800 $ 56,640 $ 42,920 [Note Morrisey 8: Brown, Ltd.'s Australianformatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by Alf-.1 Required: 1. Identify each ofthe company's expenses [including cost of goods sold] as being variable. xed, or mixed. Cost of goods sold Advertising expense Shipping expense Salaries and commissions II'ISUTEI'ICE expense Depreciation expense \f3. Redo the company's income statement at the SHED-unit level of activity using the contribution format MI_-! I_-_ I_-_ 4. Assume that the company's sales are projected to be 4,900 units in the next quarter. Prepare a contribution margin income statement. I_l_ I_I_ ssss ssssssss I_I_