Chapter 5.A, Problem 9P

To determine

Contribution format income statement: It is statement of which shows variable expenses and fixed expenses separately and contribution and net operating income of the company.

High-low Method:It is measure of separating the fixed cost and variable cost in the mixed operating cost of the company.

1. The cost formula for shipping expenses in the form $Y=a+bX$

2. The contribution format income statement for the first quarter of year 3.