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. Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 Sales in units Sales Cost of goods sold July 8,750 August 9,250 September 9,750 Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions $ 962,500 577,500 385,000 $ 1,017,500 610,500 407,000 $ 1,072,500 643,500 429,000 31,000 31,000 31,000 120,000 125,800 131,600 160,000 167,900 175,800 Insurance expense 6,950 6,950 6,950 Depreciation expense 16,700 Total selling and administrative expenses 334,650 16,700 348,350 16,700 362,050 $ 50,350 $ 58,650 $ 66,950 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 9,750-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 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 per unit per unit Fixed Cost Y= Y= < Required 1 Required 3 > Formula 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 9,750-unit level of activity using the contribution format. Variable expenses: Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Fixed expenses