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 Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July August September 7,750 8,250 8,750 $775,000 $825,000 Cost of goods sold $875,000 465,000 495,000 525,000 Gross margin 310,000 330,000 350,000 Selling and administrative expenses: Advertising expense 28,200 28,200 28,200 Shipping expense 89,500 94,500 99,500 Salaries and commissions 140,000 147,500 155,000 Insurance expense 7,200 7,200 7,200 Depreciation expense Total selling and administrative expenses 21,600 286,500 $ 23,500 21,600 299,000 $31,000 21,600 311,500 $ 38,500 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 8,750-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. < Previ 4 of 4 Next > Check my work