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 Monthly Income Statements March April Sales in units 5, 300 4,800 Sales revenue $726,100 $657, 600 Less: Cost of goods sold 379,500 352,000 Gross margin 346,600 305,600 Less: Operating expenses Shipping expense 64,900 59,900 Advertising expense 73,000 73,000 Salaries & commissions 163,600 144, 300 Insurance expense 9, 300 9,300 Depreciation expense 42,000 42,000 Total operating expenses 352,800 328,500 Net income $ (6,200) $ (22, 900) May 5,550 $760, 350 388,250 372,100 June 6,200 $849,400 429,000 420,400 68,150 73,000 165,550 9, 300 42,000 358,000 $ 14,100 72,500 73,000 183,500 9, 300 42,000 380, 300 $ 40,100 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. 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. COGS Y Y + Shipping Salaries and commissions XXX Y = 2. Using the cost equations, prepare a contribution margin income statement (in good form) for September when 5,900 units are expected to be sold. CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs Less fixed costs. CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs: Less fixed costs