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		6,100			5,600			6,900			8,200
Sales revenue	$	756,400		$	694,400		$	855,600		$	1,016,800
Less: Cost of goods sold		400,150			374,976			444,912			518,568
Gross margin	$	356,250		$	319,424		$	410,688		$	498,232
Less: Operating Expenses
Shipping expense	$	63,700		$	53,800		$	67,200		$	65,500
Advertising expense		86,500			86,500			86,500			86,500
Salaries and commissions		164,100			137,500			167,000			176,000
Insurance expense		14,500			14,500			14,500			14,500
Amortization expense		47,500			47,500			47,500			47,500
Total operating expenses	$	376,300		$	339,800		$	382,700		$	390,000
Net income	$	(20,050	)	$	(20,376	)	$	27,988		$	108,232

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.)

2.	Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 77,500 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.)

3.	Calculate the change in profit if the selling price were reduced by $10.0 each and annual sales were to increase by 7,200 units.

4.	Determine the change in profit if the company were to increase advertising by $111,000 and if this were to increase sales by 7,200 units.