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 6,500 6,000 7,500 9,000 Sales revenue $ 773,500 $ 714,000 $ 892,500 $ 1,071,000 Less: Cost of goods sold 410,750 385,560 464,100 546,210 Gross margin $ 362,750 $ 328,440 $ 428,400 $ 524,790 Less: Operating Expenses Shipping expense $ 64,500 $ 53,000 $ 68,000 $ 63,500 Advertising expense 92,500 92,500 92,500 92,500 Salaries and commissions 165,300 135,500 169,000 166,000 Insurance expense 16,500 16,500 16,500 16,500 Amortization expense 49,500 49,500 49,500 49,500 Total operating expenses $ 388,300 $ 347,000 $ 395,500 $ 388,000 Net income $ (25,550 ) $ (18,560 ) $ 32,900 $ 136,790 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 83,500 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 $12.0 each and annual sales were to increase by 8,000 units. 4. Determine the change in profit if the company were to increase advertising by $115,000 and if this were to increase sales by 8,000 units.