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 July August Sales in units 7,000 7,500 Sales $ 735,000 $ 787,500 Cost of goods sold 441,000 472,500 Gross margin 294,000 315,000 Selling and administrative expenses: Advertising expense 36,400 36,400 Shipping expense 75,000 79,400 Salaries and commissions 120,000 127,200 Insurance expense 8,400 8,400 Depreciation expense 22,800 22,800 Total selling and administrative expenses 262,600 274,200 Net operating income $ 31,400 $ 40,800 September 8,000 $ 840,000 504,000 336,000 36,400 83,800 134,400 8,400 22,800 285,800 $ 50,200 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as eith variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed porti of each mixed expense in the form Y = a + bx. 3. Redo the company's income statement at the 8,000-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. Classification Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Complete this question by entering your answers in the tabs below. 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 Fixed Cost Formula per unit Y= per unit Y = + X 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 8,000-unit level of activity using the contribution format. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Variable expenses: Fixed expenses