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 Sales in units 7,250 7,750 Sales $ 652,500 $ 697,500 Cost of goods sold 391,500 418,500 Gross margin 261,000 279,000 Selling and administrative expenses Advertising expense 22,000 22,000 Shipping expense 78,500 83,100 Salaries and commissions 130,000 137,300 Insurance expense 9, 250 9,250 Depreciation expense 15,000 15,000 Total selling and administrative expenses 254,750 266,650 Net operating income $ 6,250 $ 12,350 September 8,250 $ 742,500 445,500 297,000 22,000 87,700 144,600 9,250 15,000 278,550 $ 18,450 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 8,250-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods s variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and of each mixed expense in the form Ya+bX 3. Redo the company's income statement at the 8,250-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. Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Figure 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 Y = a + bx 3. Redo the compari's income statement at the 8,250-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 (Round the Variable cost per unit to 1 decimal place Fixed Cost Formula Variable Cost per unit perunt Y Redo the company's income statement at the 8,250-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 02 Variable expenses Fixed expenses
