Need help with answer for Accounting 226. Thank You. I don't know if you can see the problem for question #2 for first worksheet so I screen shot. http://puu.sh/26jdu

Problem 2-18 Cost Behavior; High-Low Method; Contribution Format Income Statement [LO3, LO4, LO5] Frankel Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses (in British pounds) for the last three months are given below: April Sales in units Sales revenue Cost of goods sold Gross margin Selling and administr ative expenses: Shipping expense Advertisi ng expense Salaries and commissi ons Insurance expense Depreciat ion expense May 1,600 3,300 Frankel Ltd. Comparative Income Statements For the Three Months Ended June 30 June 4,950 273,600 564,300 846,450 113,600 234,300 351,450 160,000 330,000 495,000 39,700 60,100 79,900 70,000 70,000 70,000 96,400 161,000 223,700 9,400 9,400 9,400 41,400 41,400 41,400 Total selling and administr ative expenses 256,900 341,900 424,400 Net operating income 70,600 (11,900) (96,900) (loss) (Note: Frankel Ltd.'s income statement has been recast in the functional format common in the United States. The British currency is the pound, denoted by .) Required: 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed. Expenses Cost of goods sold Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense Classification 2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "" sign in your response.) Fixed Cost per unit per unit 3. Redo the company's income statement at the 4,950-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "" sign in your response.) Frankel Ltd. Income Statement For the Month Ended June 30 Variable expenses: Contribution margin Fixed expenses: Problem 6-18 Variable Costing Income Statement; Reconciliation [LO2, LO3] During Denton Company's first two years of operations, the company reported absorption costing net operating income as follows: Year 1 Sales (@ $50 per unit) Cost of goods sold (@ $34 per unit) Year 2 $ $ 1,500,000 680,000 480,000 310,000 $ 1,020,000 320,000 Gross margin Selling and administrative expenses* Net operating income 1,000,000 340,000 10,000 $ 140,000 * $3 per unit variable; $250,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($350,000 25,000 units) $ 8 10 2 14 Absorption costing unit product cost $ 34 Production and cost data for the two years are given below: Units produced Units sold Year 1 25,000 20,000 Year 2 25,000 30,000 Required: 1. Prepare a variable costing contribution format income statement for each year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Variable Costing Income Statement Year 1 Year 2 $ $ Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses $ $ 2. Reconcile the absorption costing and variable costing net operating income figures for each year. (Loss amounts and amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating income (loss) $ Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing $ Absorption costing net operating income (loss) $ $