20 Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage 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 $319,300 15 Selling expenses Sales salaries and commissions 66,400 Advertising 22,500 Travel 5,000 Miscellaneous selling expense 5,500 Administrative expenses Office and officers' salaries 64,900 Supplies 8,000 Miscellaneous administrative expense 7,360 3 Total $498,960 $84 It is expected that 7,260 units will be sold at a price of $210 a unit. Maximum sales within the relevant range are 9,000 units, Required: 7 6 | 3 1. Prepare an estimated income statement for 2017 Belmain Co. Estimated Income Statement It is expected that 7,260 units will be sold at a price of $210 a unit. Maximum sales within the relevant range are 9,000 units. Required: 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Cost of goods sold: Total cost of goods sold Gross profit Expenses: Selling expenses Total selling expenses Administrative expenses: Total administrative expenses Previous Next > Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income