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 September Sales in units 5,000 5,500 6,000 Sales $ 625,000 $ 687,500 $ 750,000 Cost of goods sold 375,000 412,500 450,000 Gross margin 250,000 275,000 300,000 Selling and administrative expenses Advertising expense 22,800 22,800 22,800 Shipping expense 46,000 48,800 51,600 Salaries and commissions 92,000 98,400 64,800 Insurance expense 6,050 6,050 6,050 Depreciation expense 24,700 24,700 24,700 Total selling and administrative expenses 191,550 200, 750 209,950 Net operating income $ 58,450 $ 74,250 $ 90,050 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 6,000-unit level of activity using the contribution format. Saved Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as eith variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed porti of each mixed expense in the form Y = a + bx. 3. Redo the company's income statement at the 6,000-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. Classification Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Required 2 > aded Homework Saved Help Save Net operating income $ 58,450 $ 74,250 #YU,050 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as elther 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 6,000-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 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. (Round the Variable cost per unit to 1 decimal place.) Fixed Cost Formula Variable Cost per unit per unit Y- Required 1 Required 2 Required 3 Redo the company's income statement at the 6,000-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses Fixed expenses ces
