The accounting department of Archer Companv, a merchandising companyI has prepared the following analvsis: Cost Formula Cost of goods sold S 56 per unit Sales commissions 12% of sales Advertising expense $300,000 per month Administrative salaries $160,000 per month Billing expense '9 Depreciation expense $62,000 per month The accounting department feels that billing expense is a mixed cost, containing both fixed and variable cost elements. The billing expenses and sales in units over the last several months follow: Unit sold Billing expense [000} Januaryr 9 530,000 Februaryr 11 533,000 March 14 336,000 April.... 1? SHADE!) lluf'lail'5.r ............-.........-.......-.........-....... 15 $39,000 June 12 $35,000 The accounting department now plans to develop a cost formula for billing expense so that a contribution format income statement can be prepared for management's use. Required: 1. Using the least squares method, estimate the cost formula for billing expense 2. Assume the company' plans to sell Ell units during July at a selling price of SIDE) per unit. Prepare a budgeted income statement for the month. Using the contribution format