Part II This situation involves a cost analysis problem. JoyToy 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 Formula Cost of good sold ............ $35 per unit sold Advertising expense .......... $210000 per quarter Sales commissions ........... 6% of sales Shipping expense ............ ? Administrative salaries ........ $145000 per quarter Insurance expense ........... $9.000 per quarter Depreciation expense ......... $76000 per quarter Management has provided you data for units sold and the related shipping expense over the last eight quarters as follows: Sprmg Quarter Units Sold Expense Year 1: First ...................... 10.000 $119000 Second ................... 16.000 $175.000 Third ..................... 18.000 $190.000 Fourth .................... 15.000 $164.000 Year 2. First ...................... 11.000 $130.000 Second ................... 17.000 $185000 Third ..................... 20.000 3210.000 Fourth .................... 13.000 $147.000 J oyToy 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 guarter. Required: 1. Select an approach and estimate a cost formula for shipping expense. Be sure to explain the approach you selected. 2. In the rst 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 guarter