Question 1: Cheap Shades Inc. (11 marks) Please leave column A blank as I would like to use that for marking purposes Cheap Shades Inc. is a retail business that sells a single product (knockoff sunglasses). The company's revenues and expenses for the last 3 years are given below: Cheap Shades Inc. Comparative Income Statement 2020 2021 2022 Sales in units 175,700 193,270 222,261 Sales revenue $ 6,149,500 $ 6,764,450|$ 7,779,135 Less cost of goods sold $ 3,162,600 $ 3,478,860 $ 4,000,698 Gross margin 2,986,900 3,285,590 3,778,437 Less operating expenses Shipping expense 676,445 676,445 676,445 Advertising expense 614,950 676,445 777,914 Salaries and commissions 143,000 161,750 180,500 Insurance expense 9,000 9,000 9,000 Depreciation expense 42,000 42,000 42,000 Total operating expenses 1,485,395 1,565,640 1,685,859 Operating Income $ 1,501,505 $ 1,719,950 $ 2,092,579 Required: a. Based on cost behaviour experienced in prior 3 years above, identify which expenses are variable, which expenses are fixed and which expenses are mixed (use the chart below). (4.5 marks) Expense Description Type Cost of goods sold Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense b. For those expenses listed above that you identified as mixed, separate each mixed expense into its variable and fixed components using the high-low method and state the cost formula for each mixed expense. (3 marks) C. Assume that for 2023 sales are projected to be 445,000 units Create a contribution margin income statement for 2023 assuming cost behaviour identified in a. and b. will not change in 2023. (3.5 marks)