4 Problem 5A-7 (Algo) Cost Behavior; High-Low Method; Contribution Format Income Statement [LO5-10] 2 points Morrisey & Brown, Limited, of Sydney is a merchandising company 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, Limited Income Statements For the Three Months Ended September 30 Book July August Bales in unita 5,500 6,000 6,500 Sales 577,500 630,000 682,500 Print Cost of goods sold 346,500 378,000 409,500 Gross margin 231,006 253,000 273,000 Selling and administrative expesses: Advertising expense 24,200 24,2001 24,200 References Shipping expense 57,000 60.200 63,400 Salaries and commissions 104,000 110,600 117,200 Insurance expense Depreciation expense Total selling and administrative expenses Net operating incone 9,200 19,600 214,000 $17,000 9,200 19,600 233,800 $28,200 9,200 19,600 233,400 39,400 Mc Graw Frie Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y=a+bx 3. Redo the company's income statement at the 6,500-unit level of ectivity using the contribution format Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 < Prev 4 of 4 Next Check my work alloo Prot eferences of each mixed expense in the form Ya+bX 3. Redo the company's income statement at the 6,500-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification Mc Graw Required 2> Book L 3. Redo the company's Income statement at the 6,500-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fleed portions of each mixed expense in the form Ya+ bx. (Round the Variable cost per unit to 1 decimal place.) Variable Coat Fixed Cont per unit per unit < Prev 4 of 4 Next Formula X X Complete this question by entering your answers in the taps Delow. Required 1 Required 2 Required 3 Redo the company's income statement at the 6,500-unit level of activity using the contribution Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Variable expenses: Fixed expenses: < Required 2 Required 3 Prev 4 of 4 Next