M Assignment 6 Due 11 x C O ezto mheducation.com/hm.tpx Value 20.00 points 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 March Apr May June Sales in units 700 6.200 7,800 9,400 $717,000 $647,000 $797,000 $857,000 Sales revenue Less: Cost of goods sold 378,500 350,500 387,500 443,000 $338,500 $296,500 $409,500 $414,000 Gross margin Less: Operating Expenses 64,900 52,600 68,400 62,500 Shipping expense 95,500 Advertising expense 95,500 95,500 95,500 Salaries and commissions 165,900 134,500 170,000 165,000 Insurance expense 17,500 17,500 17,500 17,500 50,500 Amortization expense 50,500 50,500 50,500 $394,300 $350,600 $401,900 $391,000 Total operating expenses (55,800) (54,100) 7,600 23,000 Net income 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. E Cost of goods sold per unit Shipping E per unit E Salaries & commission per unit