Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements for the three most recent months follow:

Required:

By analyzing data from the company's income statements, classify each of its expenses $($including cost of goods sold$)$ as either variable, fixed, or mixed.

Using the high$-$low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form $Y=a+bx.$

Redo the company's income statement at the $8,000-$unit level of activity using the contribution format.

Complete this question by entering your answers in the tabs below.

Required $1$

Redo the company's income statement at the $8,000-$unit level of activity using the contribution format.

Note: Round your intermediate calculations to $1$ decimal place.

Morrisey and Brown, Limited