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 6,500 7,000 $650,000 $700,000 7,500 $750,000 Cost of goods sold 390,000 420,000 450,000 Gross margin 260,000 280,000 300,000 Selling and administrative expenses: Advertising expense 25,800 25,800 25,800 Shipping expense 69,000 73,000 77,000 Salaries and commissions 118,000 125,000 132,000 Insurance expense 9,750 9,750 9,750 Depreciation expense Total selling and administrative expenses 16,400 238,950 $ 21,050 16,400 249,950 $30,050 16,400 260,950 $ 39,050 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 7,500-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 Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification