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 5,700 5,200 $735,300 $670 800 389,550 362,232 Sales in units Sales revenue Less: Cost of goods sold May 6,300 $812 700 422,604 June 7,400 5954 600 486,846 $345.750 $308,568 $390,096 $467.754 Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense $ 62,900 80,500 162,900 12.500 45,500 $ 54,600 80,500 139,500 12,500 45,500 66,400 80,500 165,000 12,500 45,500 $ 67,500 80,500 177.000 12 500 45,500 Total operating expenses $364,300 $(18,550) $332,600 5 (24.032) $369,900 $383,000 $ 20.1965 84.754 Net income 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 Shipping Salaries & commission per unit 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 $75 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