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 5,980 5,400 $755,200 $691,200 386, 400 359,400 368,800 331,800 Hay 6,150 $787,200 394,900 392,300 June 6,800 $870,400 435,000 435,40e 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 68,800 79,00 174,180 9,900 48,000 379,800 $(11,eee) 64,300 79, eee 157,300 9,900 48,000 358,500 $(26,700) 71,800 79,000 174.800 9,900 48,000 383,500 $8,880 75,500 79,000 189,500 9,900 48,000 401,900 $ 33,560 Required: 1. Management is concerned about the losses experlenced during the spring and would like to know more about the cost behaviou. Develop a cost equation for each of the costs. Y COGS Shipping Salaries and commissions Y Y 2. Using the cost equations, prepare a contribution margin income statement in good form) for September when 6,300 units are expected to be sold. CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs 0 Less fixed costs S Prey 6 of 6 Next