1. Using the High-Low method, write the cost formula for each expenses as variable, fixed or mixed.

2. Prepare a contribution margin income statement based on a volume of 2,500 windows wash.

3. Compute the Break even point in dollars and units

4. Compute the operating leverage

5. Compute the margin of safety.

uestion 2 (10 points Wong Window Cleaners's monthly income statement is the following: Jul August 2,000 $6,000 2,400 3,600 September Windows washed Sales revenues Cost of goods sold Gross margin Operating expenses: 3,000 1,000 $3,000 1,200 1,800 $9,000 3,600 5,400 Advertising Salaries 600 1,200 1,200 2,400 600 800 800 1,400 600 600 400 200 Other expenses Operating income