Central Valley Company is a manufacturing firm that produces and sells a single product. The companys revenues and expenses for the last four months are given below.

Central Valley Company Comparative Income Statement
	March			April				May			June
Sales in units		5,200			4,700			5,550			6,400
Sales revenue	$	712,400		$	643,900		$	760,350		$	876,800
Less: Cost of goods sold		376,300			347,706			395,382			447,168
Gross margin	$	336,100		$	296,194		$	364,968		$	429,632
Less: Operating Expenses
Shipping expense	$	61,900		$	55,600		$	65,400		$	70,000
Advertising expense		73,000			73,000			73,000			73,000
Salaries and commissions		161,400			142,000			162,500			179,500
Insurance expense		10,000			10,000			10,000			10,000
Amortization expense		43,000			43,000			43,000			43,000
Total operating expenses	$	349,300		$	323,600		$	353,900		$	375,500
Net income	$	(13,200	)	$	(27,406	)	$	11,068		$	54,132

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. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)

2.	Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 68,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.)

3.	Calculate the change in profit if the selling price were reduced by $5.0 each and annual sales were to increase by 5,400 units.

4.	Determine the change in profit if the company were to increase advertising by $102,000 and if this were to increase sales by 5,400 units.