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.

Central Valley Company Comparative Income Statement March April 5,700 5,200 $ 735,300 $ 670,800 389,550 362,232 $ 345,750 $ 308,568 May 6,300 $ 812,700 422,604 $ 390,096 June 7,400 $ 954,600 486,846 $ 467,754 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 $ 62,900 $ 54,600 $ 66,400 80,500 80,500 80,500 162,900 139,500 165,000 12,500 12,500 12,500 45,500 45,500 45,500 $364,300 $ 332,600 $ 369,900 $ (18,550) $ (24,032) $ 20,196 $ 67,500 80,500 177,000 12,500 45,500 $ 383,000 $ 84,754 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.) 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 73,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) units Break-even sales Annual profit (73,000 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. 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