Parts two and three please

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 Sales in units 7,500 Sales $ 712,500 Cost of goods sold 427,500 Gross margin 285,000 Selling and administrative expenses: Advertising expense 39,600 Shipping expense 81,000 Salaries and commissions 135,000 Insurance expense 6,100 Depreciation expense 19,300 Total selling and administrative expenses 281,000 Net operating income $ 4,000 August 8,000 $ 760,000 456,000 304,000 September 8,500 $ 807,500 484,500 323,000 39,600 85,800 142,400 6,100 19,300 293, 200 $ 10,800 39,600 90,600 149,800 6,100 19,300 305,400 $ 17,600 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 8,500-unit level of activity using the contribution format. 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 Y = + Advertising expense Advertising expense XX per unit Y = + Redo the company's income statement at the 8,500-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses: 0 0 Fixed expenses: 0 $ 0