Please help! I entered some accounts in the statement, but I hardly know if they are correct or not.

Please help with entire problem

Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Formula $32 per unit sold $188,000 per quarter 8% of sales Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $98,000 per quarter $10,800 per quarter $68,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Units Sold Shipping Expense Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 34,000 36,000 41,000 37,000 $ 178,000 $ 193,000 $235,000 $198,000 35,000 38,000 52,000 49,000 $188,000 $203,000 $250,000 $226,000 Milden Company's president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. Required: 1. Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above. Shipping Expense Units Sold High activity level Low activity level Change 0 $ per unit Variable cost per unit Fixed cost element 2. In the first quarter of Year 3, the company plans to sell 39,000 units at a selling price of $65 per unit. Prepare a contribution format income statement for the quarter. (Do not round your intermediate calculations.) Milden Company Budgeted Contribution Format Income Statement For the First Quarter, Year 3 Sales Variable expenses: Cost of goods sold Sales commissions Shipping expense Total variable expenses Contribution margin Fixed expenses: T il Total fixed expenses