Part II This situation involves a cost analysis problem. Joy Toy Company has a franchise to purchase unique products from toy manufacturers and distribute them on the retail level. As a planning aid, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following: Cost Cost of good sold. Advertising expense Sales commissions. Shipping expense.. Administrative salaries Insurance expense. Depreciation expense. Cost Formula $35 per unit sold $210,000 per quarter 6% of sales $145,000 per quarter $9,000 per quarter $76,000 per quarter Management has provided you data for units sold and the related shipping expense over the last eight quarters as follows: Quarter Shipping Units Sold Expense Year 1: First.. 10,000 $119,000 Second 16,000 $175,000 Third 18.000 $190,000 Fourth 15,000 $164,000 Year 2: First. 11,000 $130,000 Second. Third 17,000 $185,000 20,000 $210,000 Fourth 13,000 $147,000 Joy Toy Company's president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. Required: 1. Select an approach and estimate a cost formula for shipping expense. Be sure to explain the approach you selected. 2. In the first quarter of Year 3, the company plans to sell 12,000 units at a selling price of $100 per unit. Prepare a contribution format income statement for the quarter