wpter 5A - HW 2 Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas: Cont cost of good sold Advertising expense Sales commissions Shipping expense Ministrative salaries Tasurance expense Depreciation expense Cost Formula 525 per unit sold $175,000 per quarter 71 of sales ? $85,000 per quarter $9,500 per quarter $55,000 per quarter Rook erences Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: Shipping Quarter Units Sold Expense Year 1: Parat 21,000 $165.000 Second 23,000 $ 180,000 Third 28.000 $ 222.000 Fourth 24,000 $185.000 Year 2 First 22,000 $175,000 Second 25,000 $190,000 Third 35,400 $ 237.000 Fourth 32,400 $213,000 Required: 1. Using the high-low method, estimate a cost formula for shipping expense in the form Ya+bx. 2. In the first quarter of Year 3, the company plans to sell 31.000 units at a selling price of $55 per unit. Prepare a contribution format income statement for the quarter. Complete this question by entering your answers in the tabs below. Required 1 2 In the first quarter of Year 3, the company plans to sell 31,000 units at a selling price of $55 per unit. Prepare a contribution format Income statement for the quarter. Milden Company Budgeted Contribution Format Income Statement For the First Quarter, Yoar 3 Book Variable expenses Print Herences Total variable expenses Fixed expenses Total forced expenses w MacBook Pro