20.00 points Problem 2-23 High-Low Method; Contribution Format income Statement [LO2-5, LO2-6] Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of good sold $21 per unit sold Advertising expense $171,000 per quarter Sales commissions 4% of sales Shipping expense Administrative salaries $81,000 per quarter Insurance expense $9,100 per quarter Depreciation expense $51,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Shipping Quarter Units Sold Expense Year 1: 17,000 $161,000 First 19,000 $176,000 Second 24,000 $218,000 Third Fourth 20,000 $181,000 Year 2: 18,000 $171,000 First 21,000 $186,000 Second Third 27,000 $231,000 24,000 $207,000 Fourth Milden Company's president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. Required 1. Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above