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 Quarter 2 5,500 6,000 Quarter 3 Quarter 4 6,800 6,100 A$600,000 A$550,000 A$680,000 A$610,000 360,000 330,000 408,000 366,000 240,000 220,000 272,000 244,000 22,500 22,500 22,500 22,500 40,000 42,000 47,200 41,700 87,000 81,000 96,600 93,700 7,500 7,500 7,500 7,500 16,500 16,500 16,500 16,500 173,500 169,500 190,300 181,900 A$ 66,500 A$ 50,500 A$ 81,700 A$ 62,100 (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$.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. Variable Cost Fixed Cost A$ per unit A$ A$ per unit A$ per unit PicMerger