Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements for the three most recent months follow:Morrisey & Brown, LimitedIncome StatementsFor the Three Months Ended September $30$ July August SeptemberSales in units $8,0008,5009,000$Sales $ $840,000$ $ $892,500$ $ $945,000$Cost of goods sold $504,000535,500567,000$Gross margin $336,000357,000378,000$Selling and administrative expenses:Advertising expense $36,60036,60036,600$Shipping expense $95,000100,200105,400$Salaries and commissions $145,000152,600160,200$Insurance expense $8,8508,8508,850$Depreciation expense $24,40024,40024,400$Total selling and administrative expenses $309,850322,650335,450$Net operating income $ $26,150$ $ $34,350$ $ $42,550$ Required: By analyzing data from the company's income statements, classify each of its expenses $($including cost of goods sold$)$ as either variable, fixed, or mixed.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$.$Redo the company$’$s income statement at the $9,000-$unit level of activity using the contribution format.Redo the company's income statement at the $9,000-$unit level of activity using the contribution format. Note: Round your intermediate calculations to $1$ decimal place.Morrisey and Brown, LimitedIncome StatementFor the Month Ended September $30$

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Redo the company's income statement at the 9,000-unit level of activity using the contribution format. Note: Round your intermediate calculations to 1 decimal place. Variable expenses: Fixed expenses. Morrisey and Brown, Limited Income Statement For the Month Ended September 30 $ 0 0 0 0 Redo the company's income statement at the 9,000-unit level of activity using the contribution format. Note: Round your intermediate calculations to 1 decimal place. Variable expenses: Fixed expenses. Morrisey and Brown, Limited Income Statement For the Month Ended September 30 $ 0 0 0 0

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To classify each of the expenses including cost of goods sold as either variable fixed or mi... View the full answer