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 MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Sales in units Quarter 1 Quarter 2 5,900 5,400 Sales revenue Quarter 3 Quarter 4 6,680 6,000 A$668,000 A$600,000 400,800 A$590,000 AS$540,000 Less: Cost of goods sold Gross margin 354,000 324,000 360,000 236,000 216,000 267,200 240,000 Less: Operating expenses: Advertising expense Shipping expense 22,400 22,400 22,400 22,400 39,600 41,600 46,720 41,320 86,400 80,800 96,160 93,120 Salaries and commissions Insurance expense 7,400 7,400 7,400 7,400 16,400 16,400 16,400 Depreciation expense 16,400 168,600 172,200 189,000 180,640 Total operating expenses A$ 63,800 A$ 47,400 A$ 78,120 A$ 59,360 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$.) ning variable, fixed, or mixed. Ausuala la suculeu by ma) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions. Insurance expense Depreciation expense Deve 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. Variable Cost Fixed Cost A$ AS A$ AS AS AS per unit per unit per unit 3. Redo the company's income statement at the 6,680-unit level of activity using the contribution format MORRISEY & BROWN, LTD. Contribution Margin Income Statement For the Quarter Ended September 30 2:42 Sales in units Less: Variable expenses AS Less: Fixed expenses AS AS 0 0 0 4. Assume that the company's sales are projected to be 5.200 units in the next quarter. Prepare a contribution marc statement. MORRISEY & BROWN, LTD. 2:12.09 Contribution Margin Projected Income Statement For the Quarter Ended March 31 pok Sales in units AS Less Variable expenses: AS Less Fixed expenses: A$ 0 0 0 2-b. Using the high-low method, state the cost formula for each mixed expense. Y= A$ +AS Y=AS +AS Y=AS +AS