Morrisey & Brown, Lid., 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: MORRISEY & BROWN, LTD. Income Statements For the Three Months Ending September 30 July August September Sales in units 4,900 5,400 5,900 Sales revenue A$ 507.640 A$559,440 A$ 611,240 Less: Cost of goods sold 302.820 333,720 364,620 Gross margin 204,820 225,720 246,620 Less: Operating expenses: Advertising expense 21,900 21,900 21,900 Shipping expense 37.600 39,600 41,420 Salaries and commissions 83.400 89.400 95,220 Insurance expense 6.900 6,900 6,900 Depreciation expense 15.900 15,900 15,900 Total operating expenses 165,700 173,700 181,340 Net income A$ 39,120 A$ 52,020 A$ 65,280 (Note: Morrisey & Brown, Lid.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense2- Using the high-low method, state the cost formula for each mixed b. expense. (Do not round intermediate calculations. Round the "X" answers to 2 decimal places.) Y= A$ + A$ X Y= AS + AS X Y= A$ + A$ X 3. Redo the company's income statement at the 5,900-unit level of activity using the contribution format MORRISEY & BROWN, LTD. Income Statement For the Month Ended September 30 Sales in units 5,900 AS Less: Variable expenses: AS Less: Fixed expenses: AS