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:

Required:

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.

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 $Y=a+bx.$

Redo the company's income statement at the $9,750-$unit level of activity using the contribution format.

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Required $1$

By analyzing the data from the company's income statements, classify each of its expenses $($including cost of goods sold$)$ as