Sales in units Sales revenue MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Quarter 1 Quarter 2 Quarter 3 Quarter 4 5,800 5,300 6,560 5,900 A$580,000 A$530,000 A$656,000 A$590,000 348,000 318,000 232,000 212,000 393,600 354,000 262,400 236,000 22,300 22,300 22,300 22,300 39,200 41,200 46,240 40,940 85,800 80,600 95,720 92,540 7,300 7,300 7,300 7,300 16,300 170,900 16,300 167,700 16,300 16,300 187,860 179,380 Net income A$ 61,100 A$ 44,300 A$ 74,540 A$ 56,620 (Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification