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 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense Total operating expenses Net income 5,700 $735,300 369,550 $ 345,750 $ 62,900 5,200 $670,800 362,232 $308,568 May 6,300 $ 812,700 June 7,400 $ 954,600 422,604 $390,096 486,846 $467,754 $ 54,600 $ 66,400 $67,500 50,500 80,500 80,500 80,500 162,900 12,500 45,500 $364,300 45,500 $332,500 $ (18,550) $ (24,032) $ 20, 196 139,500 165,000 12,500 12,500 177,000 12,500 45,500 45,500 $369,900 $ 383,000 $64,754 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. Required: 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 a per unit per unit 4 2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 73,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) Break-oven sales Annual profit (73.000 units) units 3. Calculate the change in profit if the selling price were reduced by $7.50 each and annual sales were to increase by 6.400 units. 4 4. Determine the change in profit if the company were to increase advertising by $107,000 and if this were to increase sales by 6,400 units