The variable component can be computed as shown below: Sales Units COGS Observed Costs Shipping Salaries 8L Commissions High activity June Low acvity - April Difference Compute the variable cost below: Calculate the Fixed portion of the mixed cost: 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 Maj.r June Sales in units 5,000 4,500 5,250 5,000 Sales revenue $200,000 $630,000 $235,000 $840,000 Less: Cost ofgoods sold 320,000 342,000 379,000 426,000 Gross margin $330,000 $288,000 $356,000 $414,000 Less: Operating Expenses Shipping expense $61,500 $56,000 $65,000 $21,000 Advertising expense 20,000 20,000 20,000 20,000 Salaries and commissions 160,800 143,000 161,500 180,500 Insurance expense 9,000 9,000 9,000 9,000 Amortization expense 42,000 42,000 42,000 42,000 Total operating expenses $343,000 $320,000 $342,500 $322,500 Netineome $1713 3001 $132000} $8,500 $41,500 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. 2. Using the cost equations, prep a contribution margin income statement (in good form) for September when 5,500 units are expected to be sold. (The gure check for the contribution margin in question #2 is $269,500.)