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 8,250 $ 742,500 445,500 297,000 Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July August Sales in units 7,250 7,750 Sales $ 652,500 $ 697,500 Cost of goods sold 391,500 418,500 Gross margin 261,000 279,000 Selling and administrative expenses: Advertising expense 22,000 22,000 Shipping expense 78,500 83,100 Salaries and commissions 130,000 137,300 Insurance expense 9,250 9,250 Depreciation expense 15,000 15,00 Total selling and administrative expenses 254,750 266,650 Net operating income $ 6,250 $ 12,350 22,000 87,700 144,600 9, 250 15,000 278, 550 $ 18,450 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 8,250-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. Classification Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Required Required 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 8,250 $ 742,500 445,500 297,000 Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July August Sales in units 7,250 7,750 Sales $ 652,500 $ 697,500 Cost of goods sold 391,500 418,500 Gross margin 261,000 279,00 Selling and administrative expenses : Advertising expense 22,000 22,000 Shipping expense 78,500 83,100 Salaries and commissions 130,000 137,300 Insurance expense 9,250 9,250 Depreciation expense 15, eee 15, eee Total selling and administrative expenses 254,750 266,650 Net operating income $ 6,250 $ 12,350 22,000 87,700 144,600 9,250 15,000 278,550 $ 18,450 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 8,250-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 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 = a + bx. (Round the Variable cost per unit to 1 decimal place.) Fixed Cost Formula Variable Cost per unit per unit Y = X Y = + X September 8,250 $ 742,500 445,500 297,000 Income Statements For the Three Months Ended September 30 July August Sales in units 7,250 7,750 Sales $ 652,500 $ 697,500 Cost of goods sold 391,500 418,500 Gross margin 261,000 279,000 Selling and administrative expenses: Advertising expense 22,eee 22,000 Shipping expense 78,500 83,100 Salaries and commissions 130,000 137,380 Insurance expense 9,250 9,250 Depreciation expense 15, eee 15,000 Total selling and administrative expenses 254,75 266,650 Net operating income $ 6,250 $ 12,350 22,000 87,706 144,600 9,250 15,000 278,550 $ 18,450 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 8,250-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 Redo the company's income statement at the 8,250-unit level of activity using the contribution format. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Variable expenses: Fixed expenses