Morrisey & Brown, Ltd., of Sydney is a merchandising company 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 Three Months Ended September 30 July August September 5,250 5,750 Sales in units 4,750 Sales $546,250 603,750 661,250 396,750 Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense 327,750 362,250 264,500 218,500 241,500 31,800 31,800 38,100 87,300 31,800 40,700 93,600 35,500 81,000 Salaries and commissions Insurance expense 6,550 18,000 6,550 18,000 6,550 18,000 Depreciation expense Total selling and administrative expenses 172,850 181,750 190,650 $ 73,850 $ 59,750 $45,650 Net operating income 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 Complete this question by entering your answers in the tabs below. Required 2 Required 1 By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) either variable, fixed, or mixed Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Required 1 Required 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. (Round the Variable cost per unit to 1 decimal place.) Formula Variable Cost Fixed Cost Y X per unit + X per unit Y = + Required Required 2 Advertising expense Cost of goods sold Depreciation expense Insurance expense