Morrisey & Brown, Limited, of Sydney is a merchandising company 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: Sales in units Sales Cost of goods sold Gross margin Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 Selling and administrative expenses: 511,500 July 6,750 August 7,250 September 7,750 $ 742,500 445,500 297,000 $ 797,500 478,500 319,000 $ 852,500 341,000 33,800 33,800 33,800 69,500 73,700 77,900 125,000 132,100 139,200 Insurance expense 9,900 9,900 9,900 22,100 Total selling and administrative expenses 260,300 22,100 271,600 282,900 $ 36,700 $ 47,400 $ 58,100 Advertising expense Shipping expense Salaries and commissions Depreciation expense 22,100 Net operating income Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. 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. 3. Redo the company's income statement at the 7,750-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification < Required 1 Required 2 > Morrisey & Brown, Limited, of Sydney is a merchandising company 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: Sales in units Sales Cost of goods sold Gross margin Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income Required: 511,500 July 6,750 August 7,250 September 7,750 $ 742,500 445,500 297,000 $ 797,500 478,500 319,000 $ 852,500 341,000 33,800 33,800 33,800 69,500 73,700 77,900 125,000 132,100 139,200 9,900 9,900 9,900 22,100 260,300 22,100 271,600 $ 36,700 $ 47,400 $ 58,100 22,100 282,900 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. 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. 3. Redo the company's income statement at the 7,750-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round the Variable cost per unit to 1 decimal place.) Variable Cost Fixed Cost per unit Y = per unit Y = < Required 1 Required 3 > Formula Sales in units Sales Cost of goods sold. Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions 6,150 1,250 7,750 $ 742,500 $ 797,500 $ 852,500 445,500 478,500 511,500 297,000 319,000 341,000 33,800 33,800 33,800 69,500 73,700 77,900 125,000 132,100 139,200 Insurance expense 9,900 9,900 9,900 Depreciation expense 22,100 Total selling and administrative expenses 260,300 22,100 271,600 22,100 282,900 $ 36,700 $ 47,400 $ 58,100 Net operating income Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. 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. 3. Redo the company's income statement at the 7,750-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Redo the company's income statement at the 7,750-unit level of activity using the contribution format. Variable expenses: Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Fixed expenses: < Required 2 Required 3 >