nstructions I help 3.33 points 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 Sales Cost of goods sold Gross margin Selling and administrative expenses: 4,000 4,500 $ 400,000 450,000 500,000 240,000 160,000300,000 180,0000 200,000 21,000 34,000 78,000 6,000 15,000 154,000 21,000 38,000 90,000 6,000 15,000 21,000 36,000 84,000 Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 6,000 15,000 162,000 170,000 Total selling and administrative expenses Net operating income S 6,000 18,000 30,000 2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. Formula Variable Cost Fixed Cost 12 per unit 4 per unit 12 per unit $ 4 per unit Salaries and commissions Shipping expense