Please do not give solution in image format thanku (Note: Frankel Ltd's income statement has been recast in the functional format common inthe United States. The British currency is the pound, denoted by £.)1. Using the high-low method, separate each mixed expense into variable and fixedelements. State the cost formula for each mixed expense.Variable CostVariable expenses:per unitper unitFixed expenses:Fixed CostFrankel Ltd.Contribution Format Income StatementFor the Month Ended June 30Y =Y=2. Redo the company's income statement at the 4,500-unit level of activity using the contribution format0Formula0++per unitper unit Sales in unitsSales revenueCost of goods soldFrankel Ltd.Comparative Income StatementsFor the Three Months Ended June 30AprilGross marginSelling and administrative expenses:Shipping expenseAdvertising expenseSalaries and commissionsInsurance expenseDepreciation expenseTotal selling and administrative expensesNet operating income (loss)3,000£ 420, 000168,000252,00044,00070,000107,0009,00042,000272,000£ (20,000)May3,750£ 525,000210,000315,00050,00070,000125,0009,00042,000296,000£ 19,000June4,500£ 630,000252,000378,00056,00070,000143,0009,00042,000320,000£ 58,000

Sales in units Frankel Ltd. Comparative Income Statements For the Three Months Ended June 30 April Sales revenue Cost of goods sold Gross margin Selling and administrative expenses: Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income (loss) 3,000 £ 420, 000 168,000 252,000 44,000 70,000 107,000 9,000 42,000 272,000 £ (20,000) May 3,750 £ 525,000 210,000 315,000 50,000 70,000 125,000 9,000 42,000 296,000 £ 19,000 June 4,500 £ 630,000 252,000 378,000 56,000 70,000 143,000 9,000 42,000 320,000 £ 58,000