Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is Increasing in popularity among Australlan consumers. The company's Income statements for the three most recent months follow: Norrisey & B Income Statements For the Three Months Ended Septenber 30 gus 7,000 7.500 Salem in unita Sales Cost of goods sold Gross margin Selling and administrative expenses i 6,500 s650,00070000 75,000 450,000 390,000 420,000 260,000280,000300,000 Advertising expense Shipping expense Salaries and commiasions Insurance expense Depreciation expense 25,800 69,000 118,000 9,750 16,400 238.950 $ 21,050 25,800 73,000 125,000 9,750 16,400 249.950 25,800 77,000 132,000 9,750 16,400- Total selling and administrative expenses Net operating income 260,950 39,050 30,050 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. 3. Redo the company's income statement at the 7,500-unit level of activity using the contribution format