5A-7 Cost Behavior; High-Low Method; Contribution Format Income Statement [LO5-10] Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The companys income statements for the three most recent months follow: Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July August September. Redo the Companys statement at the 5,000 unit level of activity using the contribution format

Morrisey \& Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australlan consumers. The company's income statements for the three most recent months follow: Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (induding cost of goods sold) as elther 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 5,000 - unit level of actlvity using the contribution format