After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per...

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After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) Sales Commissions (per dollar of sales) Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) $ 29.00 9.50% $ 45,000 $ 27,000 $ 36,000 Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Total Cost Units Quarter 1 $ 67,000 12,500 Quarter 2 $ 94,000 21,000 Quarter 3 $ 89,800 13,800 Quarter 4 $ 92,600 20,000 2023 Quarter 1 $ 72,500 13,700 Quarter 2 $ 80,000 14,000 Quarter 3 $ 84,000 14,300 Quarter 4 $ 100,000 22,500 Required: Use the data to answer the following. 1. Using the high-low method, determine a cost formula for shipping costs. 2. Prepare a contribution margin income statement for Quarter 1 of 2024. After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) Sales Commissions (per dollar of sales) Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) $ 29.00 9.50% $ 45,000 $ 27,000 $ 36,000 Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Total Cost Units Quarter 1 $ 67,000 12,500 Quarter 2 $ 94,000 21,000 Quarter 3 $ 89,800 13,800 Quarter 4 $ 92,600 20,000 2023 Quarter 1 $ 72,500 13,700 Quarter 2 $ 80,000 14,000 Quarter 3 $ 84,000 14,300 Quarter 4 $ 100,000 22,500 Required: Use the data to answer the following. 1. Using the high-low method, determine a cost formula for shipping costs. 2. Prepare a contribution margin income statement for Quarter 1 of 2024.