Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm 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: Sales in units Sales revenue MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Quarter 1 6,200 Quarter 2 5,700 Quarter 3 Quarter 4 7,040 6,300 A$620,000 A$570,000 A$704,000 A$630,000 372,000 342,000 422,400 378,000 248,000 228,000 281,600 252,000 22,700 22,700 22,700 22,700 40,800 42,800 48,160 42,460 88,200 81,400 97,480 94,860 7,700 7,700 7,700 7,700 16,700 16,700 16,700 16,700 176,100 171,300 192,740 184,420 A$ 67,580 A$ 71,900 A$ 56,700 A$ 88,860 (Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification 13