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 decimalplaces.)Answer: Cost of goods sold = ____ + _____ ( per unit )Shipping = ____ + _____ ( per unit )Salaries & commission = ____ + _____ ( per unit )2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 69,000units are sold during the year. (Round "Break-even sales" answer to nearest whole number.)Answer: Break-even sales = ______ (units)Annual profit (69,000 units)= ______3. Calculate the change in profit if the selling price were reduced by $5.50 each and annual sales were to increase by 5,600 units. Answer = 4. Determine the change in profit if the company were to increase advertising by $103,000 and if this were to increase sales by 5,600Answer =

ezto.mheducation.com Ch D2L D2L D2L D2L Q V G P D D2L C C Chapter 8 i Saved Help 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. Central Valley Company Comparative Income Statement March April May June Sales in units 5,300 4, 800 5,700 6,600 Sales revenue $ 715, 500 $ 648, 000 $ 769, 500 $ 891, 000 Less: Cost of goods sold 378,950 349, 920 400, 140 454, 410 Gross margin $ 336, 550 $ 298, 080 $ 369 , 360 $ 436, 590 Less: Operating expenses Shipping expense $ 62, 100 $ 55, 400 $ 65, 600 $ 69,500 Advertising expense 74,500 74, 500 74,500 74,500 Salaries and commissions 161, 700 141, 500 163, 000 179, 000 Insurance expense 10,500 10, 500 10,500 10,500 Amortization expense 43 , 500 43,500 43,500 43, 500 Total operating expenses $ 352, 300 $ 325, 400 $ 357, 100 $ 377, 000 Net income $ (15, 750) $ (27,320) $ 12,260 $ 59,590