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 1 CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs 8 00:56:34 Skipped O eBook Less fixed costs $ 0