4 alue 20.00 points Problem 8-8 Performing a Comprehensive CVP Analysis (LO2 CC5, 6) 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 Income Statement March April 4,700 May 5,550 June Sales in units Sales revenue Less: Cost of goods sold 5,200 6,400 $712,400 $643,900 $760,350 $876,800 376,300347,706395,382 447,168 $336,100 $296,194 $364,968 $429,632 Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense $61,900 $55,600 $ 65,400 70,000 73,000 179,500 10,000 43,000 73,000 161,400 10,000 43,000 73,000 142,000 10,000 43,000 73,000 162,500 10,000 43,000 Total operating expenses $349,300 $323,600 $353,900 $375,500 Net income $ (13,200) $(27,406) 11,068 $ 54,132 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.) Cost of goods sold Shipping Salaries & commission per unit per unit per unit 2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 68,000 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) Break-even sales units Annual profit (68,000 units) 3. Calculate the change in profit if the selling price were reduced by $5.0 each and annual sales were to increase by 5,400 units. ecrease in profi (107,908) 4. Determine the change in profit if the company were to increase advertising by $102,000 and if this were to increase sales by 5,400 units. Incremental prft157,092