Problem: Frankel Ltd., a British merchandising company, is the exclusive distributor of a new type of Bluetooth speaker that is becoming increasingly popular. The company's revenues and expenses (in British pounds) for the last three months are given below. FRANKEL LTD. Comparative Income Statements For the Three Months Ended June 30 April 3,000 May 3.750 June Sales in units 4,500 Sales revenue 420,000 E525,000 E630,000 168,000 210,000 252,000 252,000 315,000 378,000 Cost of goods sold Gross margin Selling and admin. expenses: Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense 51,000 70,000 107,000 115,000 143,000 44,000 70,000 56,000 70,000 9,000 42,000 42,000 Total selling and admin. expenses: 272,000 296,000 320,000 9,000 42,000 9,000 Net operating income (loss) f 20,000) 19,000 58,000 Required 1. Determine whether each cost in the income statement above is fixed, mixed or variable. 2. For each mixed cost: Using the grid below, create a scattergraph plot with 'units sold' on the x-axis and the mixed cost on the y-axis. Do you think the high-low method will give you reasonable estimates of the fixed and variable portions of the mixed cost? Why or why not