Soved Gallop Corporation prepared the following report for the first quarter of this year. Sales (@ $3,200 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $9,600,000 4,227,500 5,372,500 $1,119,000 1,190,000 2,309, eee $3,063,5ee Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: Fixed portion of the cost of goods sold for the quarter amounted to $1.467,500. Of the selling expenses, 20% was variable with respect to the number of units. - All of the administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) X Cost of goods sold Selling expenses Y = Y per quarter per quarter 2. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) GALLOP CORPORATION Income Statement For the First Quarter of this Year Less: Variable costs $ 0 0 Less: Fixed expenses 0 $ 0