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 September 9,750 $1,072,500 645,500 429,000 August 8,750 9,250 Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: $ 962,500 577,500 385,000 $1,017, 500 610,500 407,000 Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 31,000 120,000 160,000 6,950 16,700 31,000 125,800 167,900 6,950 16,700 31,000 131,600 175,800 6,950 16,700 Total selling and administrative expenses Net operating income 334,65 348,35 362,05 $ 50,350 $ 58,650 $ 66,950 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 9,750-unit level of activity using the contribution format