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 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses 5,800 April 5,300 $ 742,400 392,200 $ 678,400 366,336 May 6,450 $ 825,600 429,312 June 7,600 $ 972,800 496,128 $ 350,200 $ 312,064 $ 396,288 $ 476,672 Shipping expense $ 63,100 $ 54,400 $ 66,600 Advertising expense 82,000 82,000 82,000 Salaries and commissions 163,200 139,000 Insurance expense 13,000 13,000 165,500 13,000 $ 67,000 82,000 176,500 13,000 Amortization expense 46,000 46,000 46,000 46,000 Total operating expenses $ 367,300 $ 334,400 $ 373,100 $ 384,500 Net income $ (17,100) $ (22,336) $ 23,188 $ 92,172 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.) HINT:Use the hi-low method from chapter 6. Cost of goods sold Shipping Salaries & commission ++ per unit 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 74,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) Break-even sales Annual profit (74,000 units) units 3. Calculate the change in profit if the selling price were reduced by $8.00 each and annual sales were to increase by 6,600 units. 4. Determine the change in profit if the company were to increase advertising by $108,000 and if this were to increase sales by 6,600 units