ANSWERS MUST BE CLEAR TO READ!. ALSO, I AM MISSING SOME ANSWERS WHICH I DONT KNOW!

Problem 1-16A Cost Behavior, High-Low Method; Contribution Format Income Statement [L01-4, LO1-5, LO1-6] 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 company's income statements for the three most recent months follow Morrisey & Brown, Ltd Income Statements For the Three Months Ended September 30 July August September Sales in units 4,000 4,500 Sales $400,000 240,000 $450,000 270,000 $500,000 300,000 Cost of goods sold Gross margin Selling and administrative expenses 160,000 180,000 200,000 Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 21,000 34,000 78,000 6,000 15,000 21,000 36,000 84,000 6,000 15,000 21,000 38,000 90,000 6,000 15,000 Total selling and administrative expenses 154,000 162,000 170,000 Net operating income $6,000 S 18,000 30,000 Required 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed Expenses Classification Cost of goods sold Advertising expense Variable hipping expense Salaries and commissions Insurance expense Depreciation expense Fixed ixed ixed Fixed Fixed 2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense Variable Cost 34,000 1,000Y 4,000 1,000Y Fixed Cost Formula hipping expense per unit Salaries and commissions per unit 3. Redo the company's income statement at the 5,000-unit level of activity using the contribution format. Morrisey & Brown, Ltd Income Statement For the Month Ended September 30 ales $ 500,000 Variable expenses $ (300,000) (20,000) (60,000) Cost of goods sold hipping expense Salaries and commissions expense (380,000) Fixed expenses Advertising expense hipping expense Salaries and commissions expense nsurance expense Depreciation expense (21,000) (18,000) (30,000) (6,000) (15,000) (90,000)