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. For the Three Monthe Ended September 30 Income statements July 4,000 $ 400,000 240,000 160,000 August 4,500 $ 450,000 270,000 180,000 September 5,000 $ 500,000 300,000 200.000 Sales in unita Sales Cost of goods sold Gross margin Selling and administrative expenses Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Not oporating income 21,000 34,000 78,000 6,000 15.000 154,000 $ 6,000 21,000 36,000 84,000 6,000 15,000 162,000 $ 18,000 21,000 38,000 90,000 6,000 15,000 170,000 $ 30,000 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 YabX. 3. Redo the company's income statement at the 5,000-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 = 3 + bx. 3. Redo the company's income statement at the 5,000-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. Classification Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Required 2 > 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 Ya+bX. 3. Redo the company's income statement at the 5.000-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 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-abx Fixed Cost Formula Variable Cost per unit per unit Y Y= X 7 Required 1 Required 2 Required 3 Redo the company's Income statement at the 5,000-unit level of activity using the contribution format. oints Morrisey & Brown, Ltd Income Statement For the Month Ended September 30 eBook Print References Variable expenses Fixed expenses
