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 6,300 5,800 $762,300 $701,800 405,450 378,972 April Sales in units Sales revenue Less: Cost of goods sold May 7,200 $871,200 453,024 June 8,600 $1,040,600 530,706 $356,850 $322,828 $418,176 $ 509,894 $ Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense $ 64,100 89,500 164,700 15,500 48,500 $ 53,400 89,500 136,500 15,500 48,500 $ 67,600 89,500 168,000 15,500 48,500 64,500 89,500 167,000 15,500 48,500 Total operating expenses $382,300 $343,400 $389,100 $ 385,000 Net income $ (25,450) $ (20,572) $ 29,076 $ 124,894 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.) per unit Cost of goods sold Shipping Salaries & commission + + + per unit per unit 2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 80,500 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) units Break-even sales Annual profit (80,500 units) 3. Calculate the change in profit if the selling price were reduced by $11.0 each and annual sales were to increase by 7,600 units. Decrease in loss Decrease in profit Increase in loss Increase in profit 4. Determine the change in profit if the company were to increase advertising by $113,000 and if this were to increase sales by 7,600 units. Incremental loss Incremental profit