Saved Help Save & Exit Submit Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow Sales in units Sales revenue Less: Cost of goods sold Gross margin MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Quarter 1 Quarter 2 4,900 5,400 A$540,000 A$490,000 324,000 294,000 216,000 Quarter 3 Quarter 4 6,080 5,500 A$608,000 A$550,000 364,800 330,000 196,000 243,200 220,000 21,900 21,900 21,900 21,900 37,600 39,600 44,320 39,420 83,400 79,800 93,960 90,220 6,900 6,900 6,900 6,900 15,900 15,900 15,900 15,900 165,700 164,100 182,980 174,340 A$ 45,660 A$ 50,300 A$ 31,900 A$ 60,220 (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$) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed Expenses Classification Cost of goods sold Advertising expense Variable Fixed Haip Save & Exit Submit (Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed Expenses Classification Cost of goods sold Variable Advertising expense Fixed Shipping expense Mixed Salaries and commissions Mixed Insurance expense Fixed Depreciation expense Fixed alamants 6:29 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. Shipping expense Salaries and commissions expense 222 Variable Cost per unit per unit per unit 222 A$ Fixed Cost 2-b. Using the high-low method, state the cost formula for each mixed expense. Y-AS +AS Y-A$ AS Y-AS AS XXX no the contribution format Saved 3. Redo the company's income statement at the 6,080-unit level of activity using the contribution format MORRISEY & BROWN, LTD. Contribution Margin Income Statement For the Quarter Ended September 30 59 Sales in units Less: Variable expenses Less: Fixed expenses: A$ AS 0 0 0 AS 0 Help Seve & Exit Submit Help Save & Exit Submit 4. Assume that the company's sales are projected to be 4,950 units in the next quarter. Prepare a contribution margin income statement MORRISEY & BROWN, LTD. Contribution Margin Projected Income Statement For the Quarter Ended March 31 5:42 Sales in units Less: Variable expenses: Less: Fixed expenses: AS A$ 0 0 0 AS 0