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: September 9,500 $ 950,000 570,000 380,000 Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July August Sales in units 8,500 9,000 Sales $ 850,000 $ 900,000 Cost of goods sold 510,000 540,000 Gross margin 340,000 360,000 Selling and administrative expenses: Advertising expense 37,000 37,000 Shipping expense 110,000 115,600 Salaries and commissions 155,000 162,800 Insurance expense 10,500 10,500 Depreciation expense 17,000 17,000 Total selling and administrative expenses 329,500 342,900 Net operating income $ 10,500 $ 17,100 37,000 121,200 170,600 10,500 17,000 356,300 $ 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 Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Variable expenses: o 0 0 Fixed expenses: 0 $