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 6,300 5,800 A$630,000 A$580,eee A$716,000 429,600 286,400 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Expenses 378,000 348,000 252,eee 232,eee 22,800 22, see 41,200 48,640 88,800 97,920 7,800 7,800 16,8ee 16,800 177,400 172,200 193,960 A$ 74,600 A$ 59,800 A$ 92,440 A$ 74,320 Quarter 3 Quarter 4 7,160 6,500 A$650,000 390, 260,000 22,888 43,200 81,600 7,8ee 16,800 Classification A (Note: Smith & Chief Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) 22,800 42,840 95,440 7,800 16, see 185,680 Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed.