Question W2 (7 marks) The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are presented below: CENTRAL VALLEY COMPANY Comparative Income Statement for the Second Quarter AprilMay June Sales in units 4500 5.250 6,000 Sales revenue Less: cost of goods sold Gross margin Less: operating expenses $630,000 $735,000 $840,000 252,000 294,000 336,000 378000 441000 504,000 Shipping expense Advertising expense Salaries and commissions 56,000 6,500 71,000 70,000 143,000 161,750 180,500 9,000 70,000 70,000 9,000 42.000 42.000 2.000 Total operating expenses 320,000 346,250 372.500 $58,000 $94,750 $131,500 Insurance expense 9,000 Depreciation expense Net income Required a. Determine the cost behaviour of each expense listed above (variable/fixed/mixed).(3) b. For the each of the mixed expenses (Gf any) use the "high/low method" to separate the variable and fixed components. State the cost formula for each mixed expense. (4) Page 4