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 May June Sales in units 6,000 5,500 6, 750 8, 000 Sales revenue $ 750, 000 $ 687,500 $ 843, 750 $1, 000,000 Less: Cost of goods sold 397 , 500 371, 250 438, 750 510, 000 Gross margin $ 352 , 500 $ 316, 250 $ 405, 000 $ 490,000 Less: Operating expenses Shipping expense $ 63,500 $ 54,000 $ 67,000 $ 66,000 Advertising expense 85 , 000 85, 000 85, 000 85, 000 Salaries and commissions 163, 800 138,000 166,500 175, 500 Insurance expense 14, 000 14,000 14,000 14,000 Amortization expense 47,000 47,000 47, 000 47,000 Total operating expenses $ 373, 300 $ 338, 000 $ 379, 500 387,500 Net income $ (20, 800) $ (21, 750) $ 25,500 102, 500 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 per unit Shipping per unit Salaries & commission per unit2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 76,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) Break-even sales units Annual profit (76,000 units) 3. Calculate the change in profit if the selling price were reduced by $9.00 each and annual sales were to increase by 7,000 units. 4. Determine the change in profit if the company were to increase advertising by $110,000 and if this were to increase sales by 7,000 units