Problem 5A-7 (Algo) Cost Behavior; High-Low Method; Contribution Format Income Statement (L05-10] 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, itd. Income Statements For the Three Months Ended September 30 July August September Sales in units 9,000 9,500 10,000 Sales $ 945,000 $.997,500 $1,05e,eee Cost of goods sold 567, eee 598,500 630,000 Gross margin 378, 80e 399,000 420,000 Selling and administrative expenses: Advertising expense 30,800 30,880 38,888 Shipping expense 130,000 136,000 142,000 Salaries and commissions 165, 173, Bee 181, eee Insurance expense 10,950 19,950 10,950 Depreciation expense 17,380 17,308 17,300 Total selling and administrative expenses 354,050 368,85e 382,050 Net operating income $ 23,950 $ 30,950 $ 37,950 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as elther 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 10,000-unit level of activity using the contribution format Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs be Required 1 Required 2 Required 3 By analyzing the data from the company's income statements, classify e either variable, fixed, or mixed. Classification Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense DS below. Required 1 Required 2 Required 3 Redo the company's income statement at the 10,000-unit level of activity using t Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses: 0 0 Fixed expenses 0 P