PART II Essay Questions (Provide your answers in the blank pages attached.) 1 The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below: Central Valley Company Comparative Income Statement For the Second Quarter April May June 4.500 5.250 6.000 $630,000 $735.000 $8-40.000 252.000 294.000 336.000 378.000 #41.000 504.000 Sales in units Sales revenue Cost of goods sold Gross margin Selling and administrative expenses: Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expense... Net operating income 56.000 70,000 143.000 9.000 42.000 320.000 S58.000 63.500 71.000 70.000 70.000 161.750 180.500 9,000 9.000 12.000 +2.000 3-46.250 372.500 $ $94.750 S131.500 Required: a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and fixed components. State the cost formula for cach mixed expense. b. Compute the company's total contribution margin for May