Morrisey & Brown, 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 three most recent months follow: MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 5,800 5,300 6,560 5,900 Sales revenue A$580,000 A$530,000 A$656,000 A$590,000 Less: Cost of goods sold 348,000 318,000 393,600 354,000 Gross margin 232,000 212,000 262,400 236,000 Less: Operating expenses: Advertising expense 22,300 22,300 22,300 22,300 Shipping expense 39,200 41,200 46, 240 40,940 Salaries and commissions 85,800 80,600 95,720 92,540 Insurance expense 7,300 7,300 7,300 7,300 Depreciation expense 16,300 16,300 16,300 16,300 Total operating expenses 170,900 167,700 187,860 179, 380 Net income A$ 61,100 A$ 44,300 A$ 74,540 A$ 56,620 (Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. Salaries and commissions expense Shipping expense Answer is complete but not entirely correct. Variable Cost Fixed Cost A$ 12 per unit A$ 17,000 A$ 5% per unit A$ 13,440 A$ per unit A$ 2-b. Using the high-low method, state the cost formula for each mixed expense. Answer is complete but not entirely correct. Y AS 5 X X Shipping expense Salaries and commissions expense ????? A$ A$ 13,440 X + 17,000 + Y= AS 12 ? Y= A$ + AS