Question 1 (25 points) Saved he CV Company is a manufacturing firm that sells a single product. The company's venues and expenses for the last two months are presented below using a traditional income atement (with absorption costing): CV Company Comparative Income Statement Sales in units . 4,500 June 6,000 Sales revenue $630,000 $840,000 Less: Cost of goods sold $252,000 $306,000 Gross margin $378,000 $534,000 Less: Selling/Admin expenses Shipping $ 45,000 $ 60,000 Advertising $ 79,000 $ 79,000 Salaries and commissions $143,000 $180,500 Depreciation $ 42,000 $ 42,000 Total operating expenses $309.000 $361,500 Net operating income $ 69,000 $172.500 Required: a. Assume, when applicable, the cost driver' for all costs is units of sales. Using the high-low method, determine the expenses that are mixed, and separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense. b. Identify the fixed costs and variable costs. c. For the upcoming month of July only, prepare a budgeted contribution margin X CV Company Comparative Income Statement Sales in units May 4,500 June 6,000 Sales revenue $630,000 $840,000 Less: Cost of goods sold $252.000 $306,000 Gross margin $378,000 $534,000 Less: Selling/Admin expenses Shipping $ 45,000 $ 60,000 Advertising $ 79,000 $ 79,000 Salaries and commissions $143,000 $180,500 Depreciation $ 42,000 $ 42.000 Total operating expenses $309,000 $361,500 Net operating income $ 69,000 $172.500 Required: a. Assume, when applicable, the cost driver for all costs is units of sales. Using the high-low method, determine the expenses that are mixed, and separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense. b. Identify the fixed costs and variable costs. c. For the upcoming month of July only, prepare a budgeted contribution margin income statement in good form using Variable Costing', and assuming that sales in units will be 8,000 units at the same sales price. Assume that production equals sales