20 15 Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating average Belmain Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed cost (per unit sold) Production costs: Direct materials $30 Direct labor Factory overhead $154,800 Selling expenses: Sales salaries and commissions 32.200 Advertising 10,900 Travel 2,400 Miscellaneous selling expense 2,700 Administrative expenses Office and officers salaries 31,400 Supplies 3,900 Miscellaneous administrative expense $241.920 It is expected that 6.400 units we be sold at a price of $168. Maximum sale within the war 2,000 units Required 3 3.620 3 Total SH 1. Prepare and comment for 2017 Next Total $241,920 $84 It is expected that 6,480 units will be sold at a price of $168 a unit. Maximum sales within the relevant range are 8,000 units. Required: 1. Prepare an estimated Income statement for 2047. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2047 Cost of goods sold: Total cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses! Microsoft Auto Update is ready Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio7 Round to the nearest whole percent.