Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, 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 formulas: cost cost formula cost of good sold $27 per unit sold advertising expense $184,000 per quarter sales commissions 7% of sales shipping expense ? administrative salaries $94,000 per quarter insurance expense $10,400 per quarter depreciation expense $64,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 30,000 $ 174,000 second 32,000 $ 189,000 third 37,000 $ 231,000 fourth 33,000 $ 194,000 year 2: first 31,000 $ 184,000 second 34,000 $ 199,000 third 44,400 $ 246,000 fourth 41,400 $ 222,000