Pr 2-16 Morrisey & Brown, Ltd. Morrisey & Brown, Ltd. Income statements For 3 months ending Sept 30 July 4,000 a. Identify each item as fixed, variable or mixed Fixed Variable Mixed August September 4,500 5,000 Sales in units 400,000 240,000 160,000 450,000 270,000 180,000 500,000 300,000 200,000 Sales Cost of goods sold Gross margin Selling & Administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling & admin expenses Net operating income 21,000 34,000 78,000 6,000 15,000 154,000 6,000 21,000 36,000 84,000 6,000 15,000 162,000 18,000 21,000 38,000 90,000 6,000 15,000 170,000 30,000 Using Hi-Lo method, detern the c. Prepare a CONTRIBUTION APPROACH Income Statement Morrisey & Brown, Ltd. Income statements For 3 months ending Sept 30 July August Sales in units 4,000 4,500 September 5,000 Sales Net operating income