Morrisey & Brown. Ltd.. of Sydney is a merchandising company that is the sole distributor ofa product that Is Increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: Horrisey a Brown, Ltd. Income Statments For the Three Months Ended September 30 July August: September Sales in units 4,000 4,500 5,000 Sales $400,000 $450,000 $500,000 Cost of goods sold 240,000 2?0,000 300,000 Gross margin 160,000 130,000 200,000 Selling and administrative expenses : Advertising expense 2 1 , 000 2 1 , 000 2 1 , 000 Shipping expense 34 , 000 36 , 000 33 , 000 Salaries and omissions $1,000 34,000 90,000 Insurance expense 6 , 000 6 , 000 6 , 000 Depreciation expense 15 , 000 15 , 000 15 , 000 Total selling and administrative expenses 154 , 000 162 , 000 170 , 000 Net operating income 3 6,000 3 13,000 $ 30,000 2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. Variable Cost Fixed Cost Formula per unit Y= per unit per unit Y= per unit3. Redo the company's income statement at the 5,000-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses: Fixed expenses