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 August 7,250 $ 797,500 478,500 319,000 September 7,750 $ 852,500 511, 580 341,000 Morrisey & Brown, itd. Income Statements For the Three Months Ended September 30 July Sales in units 6,750 Sales $ 742,500 Cost of goods sold 145,500 Gross margin 297,600 Selling and administrative expenses : Advertising expense 33,800 Shipping expense 69,500 Salaries and commissions 125,000 Insurance expense 9,900 Depreciation expense 22,100 Total selling and administrative expenses 260,300 Net operating income $36,700 33,800 73,700 132,100 9,990 22,100 271,680 $ 47,400 33,800 77,900 139,200 9,900 22,100 282,900 $ 58,100 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 Ya+bX. 3. Redo the company's income statement at the 7750-unit level of activity using the contribution format. RHM +wike It hair #init Hit Ft Anna # to search O BE 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 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.) Variable Cost Fixed Cost Formula per unit per unit Y= Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses 0 0 Fixed expenses $ 0