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				May			June
Sales in units		5,100			4,600			5,400			6,200
Sales revenue	$	703,800		$	634,800		$	745,200		$	855,600
Less: Cost of goods sold		373,650			342,792			387,504			436,356
Gross margin	$	330,150		$	292,008		$	357,696		$	419,244
Less: Operating expenses
Shipping expense	$	61,700		$	55,800		$	65,200		$	70,500
Advertising expense		71,500			71,500			71,500			71,500
Salaries and commissions		161,100			142,500			162,000			180,000
Insurance expense		9,500			9,500			9,500			9,500
Amortization expense		42,500			42,500			42,500			42,500
Total operating expenses	$	346,300		$	321,800		$	350,700		$	374,000
Net income	$	(16,150	)	$	(29,792	)	$	6,996		$	45,244

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.)

1b. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 67,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.)

1c. Calculate the change in profit if the selling price were reduced by $4.50 each and annual sales were to increase by 5,200 units.

1d. Determine the change in profit if the company were to increase advertising by $101,000 and if this were to increase sales by 5,200 units.