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 6,400 5,900 $819,202 $755,200 414,000 388,000 485,200 367,200 May 6,650 $851,200 422,000 429,200 June 6,900 $883,200 448,000 443,200 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense Total operating expenses Net income 74,500 70,000 84,800 84,000 187,800 179,500 19,480 10,400 53,000 53,000 409,700 387,900 $ (4,500) S(28,700) 77,500 84,000 188,750 18,480 53,000 413,650 $ 15,550 78,000 84,800 194,500 10,400 53,000 419,90 $ 23,300 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. Y = COGS Shipping Salaries and commissions Y ++ XXX Y 11 2. Using the cost equations, prepare a contribution margin income statement (in good form) for September when 6,700 units are expected to be sold CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs 0 Less fixed costs: $