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The Central Valley Company is a manufacturing firm thot produces and sells a single product. The company's revenues and expenses for the last four months
The Central Valley Company is a manufacturing firm thot produces and sells a single product. The company's revenues and expenses for the last four months are given below Required: 1. Monagement is concerned obout 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. pleces.) 2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 77,500 units ore 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 $10.00 each and annual sales were to increase by 7,200 units: 4. Determine the change in profit if the company were to increase advertising by $11,000 and if this were to increase sales by 7,200 units
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