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6 The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last
6 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 30 Do Sales in unite Sales revenue tess: Cost of goods sold References Central Valley Company Comparative Monthly Income Statements March April May June 5,100 $703,800 4,400 $634,000 5.350 5738,300 6,300 5855,600 368,700 342,200 376,950 437,000 335,100 292,600 361,350 428,600 57,100 65,350 71,500 71,000 71,000 71,000 71,000 164,800 149,500 164,750 101,500 3,300 40,000 347,000 (11,900) 9.100 40,000 326,700 5,100 40,000 350,200 ,100 40,000 373,100 (34,100) 11,150 $55,500 Gross margin Less Operating expenses Shipping expense Salaries & commissions Isaurance expense Depreciation expense Total operating expenses Net incone 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 COGS Y Shipping Y Salaries and commissions Y 2. Using the cost equations, prepare a contribution margin income statement on god form for September when 5,700 units are expected to be sold Variable costs CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Less fxed costs 10 0
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