Problem 8-8 Performing a Comprehensive CVP Analysis (LO2 CC5, 9) 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 April 5,800 May 7,200 March June Sales in units Sales revenue Less: Cost of goods sold 8,600 $713,000 $643,000 $781,000 $853,000 376,500 348,500 385,500 439,000 6,300 Gross margin Less: Operating Expenses $336,500 $294,500 $395,500 $414,000 Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense $64,100 89,500 164,700 15,500 48,500 53,400 $ 67,600 64,500 89,500 89,500 168,000 15,500 48,500 89,500 167,000 15,500 48,500 136,500 15,500 48,500 Total operating expenses $382,300 $343,400 $389,100 $385,000 Net income $ (45,800) $(48,900) 6,400 $ 29,000 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 Cost of goods sold Shipping Salaries & commission - per unit per unit per unit