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: Sales in units Sales Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July 7,750 $775,000 August 8,250 $ 825,000 Cost of goods sold 465,000 495,000 September 8,750 $875,000 525,000 Gross margin 310,000 330,000 350,000 Selling and administrative expenses: Advertising expense 28, 200 28,200 28,200 Shipping expense 89,500 94,500 99,500 Salaries and commissions 140,000 147,500 155,000 Insurance expense 7,200 7,200 7,200 Depreciation expense 21,600 21,600 Total selling and administrative expenses 286,500 299,000 21,600 311,500. $ 23,500 $ 31,000 $ 38,500 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.