Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July August Sales in units 7,500 8,000 Sales $ 712,500 $760,000 Cost of goods sold 427,500 456,000 Gross margin 285,000 304,000 Selling and administrative expenses: Advertising expense 39,600 39,600 Shipping expense 81,000 85,800 Salaries and commissions 135,000 142,400 Insurance expense 6,100 6,100 Depreciation expense 19, 300 19, 300 Total selling and administrative expenses 281,000 293,200 Net operating income S 4,000 $ 10,800 September 8,500 $ 807,500 484,500 323,000 39,600 90,600 149,800 6,100 19,300 305, 400 $ 17,600 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 8,500-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 Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification Variable Fixed Mixed Mixed Fixed Variable 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.) Fixed Cost $ Variable Cost 10.0 per unit 15.0 per unit Shipping expense Salaries and commissions expense $ $ $ 9,000 Y = 24,000 Y = Formula 9.000 + $ 24,000 + $ 10.0 X 15.0 X $ $