2. What is the expected contribution margin ratio? 75 X % 3. Determine the break-even sales in units and dollars. Units 800 X units Dollars $2,100,000 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $2,100,000 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars Percentage (If required, round the percent to one decimal place, e.g. 15.4%.) 6. Determine the operating leverage. If required, round your answer to one decimal place, e.g. 15.4. Feedback Check My Work 2. Sales minus variable cost equals contribution margin. Contribution margin divided by sales equals contribution margin ratio. 1. Prepare an estimated income statement for 20Y3. Wolsey Industries Inc. Estimated Income Statement For the Year Ended December 31, 20Y3 Sales $ 3,500,000 Cost of goods sold: Direct materials 1,006,250 Direct labor 875,000 Factory overhead 637,500 Total cost of goods sold 2,518,750 Gross profit 981,250 Expenses: selling expenses: Saieri ommissions 285,000 dvere 40,000 W 12.000. IM Expenses: Selling expenses: Sales salaries and commissions 285,000 Advertising 40,000 Travel 12,000 Miscellaneous selling expense 29,475 Total selling expenses 366,475 Administrative expenses: office and officers' salaries 132,000 Supplies 97,500 Miscellaneous administrative expense v 35,275 Total administrative expenses 264,775 V 631,250 Total expenses 350,000 Operating income Feedback 2. What is the expected contribution margin ratio? 75 X % 3. Determine the break-even sales in units and dollars. Units 800 X units Dollars $2,100,000 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $2,100,000 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars Percentage (If required, round the percent to one decimal place, e.g. 15.4%.) 6. Determine the operating leverage. If required, round your answer to one decimal place, e.g. 15.4. Feedback Check My Work 2. Sales minus variable cost equals contribution margin. Contribution margin divided by sales equals contribution margin ratio. 1. Prepare an estimated income statement for 20Y3. Wolsey Industries Inc. Estimated Income Statement For the Year Ended December 31, 20Y3 Sales $ 3,500,000 Cost of goods sold: Direct materials 1,006,250 Direct labor 875,000 Factory overhead 637,500 Total cost of goods sold 2,518,750 Gross profit 981,250 Expenses: selling expenses: Saieri ommissions 285,000 dvere 40,000 W 12.000. IM Expenses: Selling expenses: Sales salaries and commissions 285,000 Advertising 40,000 Travel 12,000 Miscellaneous selling expense 29,475 Total selling expenses 366,475 Administrative expenses: office and officers' salaries 132,000 Supplies 97,500 Miscellaneous administrative expense v 35,275 Total administrative expenses 264,775 V 631,250 Total expenses 350,000 Operating income Feedback