1 The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. March 00:56:50 May 6,850 $ 876,800 434,450 442,350 June 6,990 $883,200 442.000 441, 200 Skipped Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense Total operating expenses Net income Central Valley Company Comparative Monthly Income Statements April 6,600 6,100 $844,800 $780,800 426,700 401,200 418,100 379,600 77.100 72,600 86,000 86,000 194,900 178,100 10, 600 10,600 55,000 55,000 423,600 402,300 $ (5.5000 $(22,700 eBook 80, 109 86,000 195,600 10,600 55,000 427,300 $ 15,050 179,000 86,000 196,500 10,600 55,000 427, 100 $ 14,100 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour Develop a cost equation for each of the costs. Net income $ (5,500) $(22,700) $ 15,050 $ 14, 190 1 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. 00:56:42 V COGS X X X Skipped + + + Shipping Salaries and commissions eBook 2. Using the cost equations, prepare a contribution margin income statement in good form) for September when 6.800 units are expected to be sold. CENTRAL VALLEY COMPANY Contribution Income Statement CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs Less fixed costs Using cost equations prepare a ccontribution margin income statement in good form) for September when 6,800 units are expected to be sold