Question 3 (1 point): Richmond Supply Ltd. is a merchandising company that sells art supplies. The company reported the following income and expenses for the year ending December 31, 2023: Sales 400,000 Cost of goods sold 240,000 Selling expenses (variable) 20,000 Selling expenses (fixed) 60,000 Administrative expenses (fixed) 35,000 Prepare an income statement using the contribution approach.

Question 4 (3 points) Cape Breton Cleaners Ltd. provides cleaning services for office buildings. They have collected the following data showing the total number of hours spent cleaning and the total costs for the past 6 months. Total hours Total cost January 1,550 44,500 February 1,400 41,200 March 1,850 50,000 April 1,300 39,800 May 1,900 50,600 June 1,700 46,900 1. Using the high-low method estimate the variable cost per hour. 2. Estimate the total fixed cost per month 3. For the month of July Cape Breton Cleaners Ltd. is expecting total hours of 1,600. Estimate the total costs that will be incurred for July.