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 April 5,000 May 6,000 March June 5,500 7,000 Sales in units Sales revenue Less: Cost of goods sold 5728,000 $880,000 $792,000 $924,000 384,250 358,400 411,840 471,240 5341,750 5303,800 5380,180 5452,780 5 82,500 55,000 8,000 68,50O Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions 77,500 182,300 140,500 11,500 44,500 77,500 184,000 78,000 11,500 44,500 77,500 77,500 11,500 44,500 11,500 44,500 Amortization expense Total operating expenses 5358,300 5329,000 5383,500 5380,000 Net income (18,550) (25,400) 18,880 72,780 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.) Cost of goods sold- Shipping Salaries & per unit per unit per unit 2. Assume that fixed costs are incurred uniformby throughout the year. Compute the annual break-even sales, and the profit if 71,000 units are sold during the year. (Round "Break-even sales answer to nearest whole number.) Break-even sales Annual profit (71,000 units) units 3. Calculate the change in profit if the selling price were reduced by $8.5 each and annual sales were to increase by 8,000 units. 4. Determine the change in profit if the company were to increase advertising by $105,000 and if this were to increase sales by 8,000 units