Question: need assistance working and solving this practice problem part/required 3 , thanks . Saved Problem 5A-7 Cost Behavior; High-Low Method: Contribution Format Income Statement [LO5-10)

Saved Problem 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 popularly 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 6.000 $570,000 342,000 228,000 August 6,500 $ 617,500 370,500 247,000 September 7.000 $ 665,000 399,000 266,00 Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses Advertising expense Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Het operating income 26,200 58.000 110,000 3,450 17.900 220.550 5 7.450 26,200 61,600 116,800 8,450 17,000 230,95 19.950 26,200 65,200 123,600 3,450 12.900 241,350 $ 24,650 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 bed elements. Express the variabile and fived portions of each mixed expense in the form Ya.bX 3. Redo the company's income statement at the 7000 unit level of activity using the contribution format
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