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:

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MORRISEY & BROWN, LTD.

Income Statements

For the Four Quarters Ending December 31

Quarter 1 Quarter 2

6,300

5,800

A$630,000 A$580, 000

378,000

348.000

252,000

232.000

Quarter 3

7,160

A$716,000

429,600

286,400

Quarter 4

6,400

A$640,000

384,000

256.000

eBook

Sales in units

Sales revenue

Less: Cost of goods sold

Gross margin

Less: Operating expenses:

Advertising expense

Shipping expense

Salaries and commissions

Tnsurance expense

Depreciation expense

Total operating expenses

22,800

22,800

22,800

22,800

41,200

43,200

48, 640

42,840

88,800

81,600

97,920

95,440

7,800

7,800

7,800

7,800

16,800

16,

,800

16,800

16,800

177,400

172,200

193,960

185,680

A$ 74,600 A$ 59,800 A$ 92,440 A$ 70, 320

Net income

(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.