• The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below:

Central Valley Company
Comparative Income Statement
For the Second Quarter
	April	May	June
Sales in units	4,500	5,250	6,000
Sales revenue	$630,000	$735,000	$840,000
Less cost of goods sold	252,000	294,000	336,000
Gross Margin	378,000	441,000	504,000
Less operating expenses:
Shipping expense	56,000	63,500	71,000
Advertising expense	70,000	70,000	70,000
Salaries and commissions	143,000	161,750	180,500
Insurance expense	9,000	9,000	9,000
Depreciation expense	42,000	42,000	42,000
Total operating expenses	320,000	346,250	372,500
Net income	$ 58,000	$ 94,750	$131,500

Required:

• Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense.