P6A - A High-Low Method Contribution Form Income Statement Orange Company Income Statements For the three months ended June 30, 202X big May Sales in units 7,000 10,000 April Small June 9,000 $ 280,000 $ 400,000 $360,000 210,000 300,000 270,000 $ 70,000 $ 100,000 $90,000 Sales Cost of goods sold Gross margin Operating expenses: Advertising Depreciation Rent Salaries and commissions Utilities Total operating expenses Net income $ 5,000 $ 5,000 $ 5,000 3,000 3,000 3,000 8,000 8,000 8,000 34,000 40,000 38,000 12,500 17,000 15,500 $ 62,500 $ 73,000 $ 69,500 $ 7,500 $ 27,000 $ 20,500 Required: 1) Classify each of the six expenses, including cost of goods sold, as variable, fixed or mixed. 2) For each of the mixed expenses found in requirement (1), find the cost equation stated in the form: Y = a + bx. 3) Prepare the income statement, for June, in contribution form