Smith & Chief 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 four most recent quarters follow: SMITH & CHIEF LTD. Income Statements. For the Four Quarters Ending December 31 Quarter 1 Quarter 2 6,400 5,900 A$640,000 A$590,000 354,000 384,000 256,000 236,000 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Expenses 22,900 41,600 89,400 Cost of goods sold Advertising expense Shipping expense Salanes and commissions Insurance expense Depreciation expense 22,900 43,600 22,900 49,120 98,360 7,900 7,900 16,900 16,900 178,700 173,100 195,180 A$ 77,300 A$ 62,900 A$ 96,020 Classification 6,600 Quarter 3 Quarter 4 7,280 A$728,000 436,800 A$660,000 396,000 291,200 264,000 81,800 7,900 16,900 (Note: Smith & Chief Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. 22,900 43,220 96,020

7,900 16,900 186,940 A$ 77,060

Smith \& Chief Lid. of Sydney. Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The companv's income ctatamanta- in.th-t. ters follow: (Note Smith \& Chief Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by AS.) Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed