The 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.

Problem 6-11 Cost Behaviour, Analysis of Mixed Costs, Contribution Margin Income Statement (LO1 - CC1, 3, 6; LO2 - CC7, 9; LO3 - CC12) 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 Monthly Income Statements March April May une Sales in units Sales revenue Less: Cost of goods sold 5,000 368,300 321,700 5,750 406,050 387,450 5,500 6,100 $759,000 $690,000 $793,500 $841,800 431,000 396,800 410,800 Gross margin Less: Operating expenses 362,200 Shipping expense Advertising expense 68,000 75,000 175,800 62,500 75.000 158,000 9,500 44,000 71,500 75,000 177,000 9,500 44,000 73,500 75,000 185,500 9,500 44,000 9,500 Insurance expense Depreciation expense 44,000 372,300 $ (10,100) Total operating expenses 349,000 377,000 387,500 Net income $(27.300) 10,450 $.23,300 Required 1. Management is concerned about the lasses experienced during the spring and wauld like to knovw more about the cost behaviour. Develop a cost equation for each of the costs. COGS Shipping Salaries and commissions Y