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 8,250 August 8,750 September 9,250 Cost of goods sold $ 783,750 470,250 Insurance expense Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Depreciation expense 313,500 $ 831,250 498,750 332,500 $ 878,750 527,250 351,500 25,400 25,400 25,400 102,500 107,900 113,300 150,000 157,700 165,400 7,350 7,350 21,400 21,400 Total selling and administrative expenses 306,650 319,750 7,350 21,400 332,850 $ 6,850 $ 12,750 $ 18,650 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 9,250-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