Problem 5A-7 Cost Behavior, High-Low Method; Contribution Format Income Statement [LO5-10) Mormsey & Brown, Ltd, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularit) 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 6,258 6, 750 7,258 Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: $656,250 $788,750 $761,250 393,750 3304, 508 425,250 456, 756 262,500 20283, 5ee Advertising expense Shipping expense Salaries and commissions 36,600 62,500 115,800 9,100 36,600 66,388 121,980 36,680 70,188 128,800 9,100 16,900 9, 100 1600 Insurance expense 16,9081 Depreciation expense Total selling and administrative expenses Net operating income 240,1025e,800 261, 580 22,480 32,700 43,090 Prov7 EE Next