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: July 8,500 August 9,000 September 9,500 $ 850,000 510,000 340,000 $ 900,000 540,000 $ 950,000 570,000 360,000 380,000 37,000 37,000 37,000 110,000 115,600 121,200 155,000 162,800 170,600 10,500 10,500 10,500 17,000 17,000 17,000 329,500 342,900 356,300 $ 10,500 $ 17,100 $ 23,700 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 9,500-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 Classification Shipping expense Salaries and commissions Insurance expense Depreciation expense