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The Central Valley Compony is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four monthis
The Central Valley Compony is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four monthis are glven below. Required: 1. Maragement 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 placest 2. Assume that fixed costs are incurred uniformly throughout the year Compute the annual break-even safes, and the profit if 76.000 units are sold during the yeac. (Round "Break-even sales" answer to nearest whole number.) 3. Calculate the change in profit if the selling price were reduced by $9.00 each and annual sales were to increase by 7.000 units. 4. Determine the change in profit if the company wore to increose advertising by $110,000 and if this were to increase sales by 7000 units
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