800 Print item 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 Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials Direct labor $30 20 Factory overhead $1,625,700 Selling expenses: 15 Sales salaries and commissions Advertising 7 337,800 114,300 Travel 25,400 11 27,900 Miscellaneous selling expense Administrative expenses: Office and officers salaries 330,200 Supplies 40,600 Miscellaneous administrative expense 3 38,260 Total 3 $2,540,160 It is expected that 11,760 units will be sold at a price of $420 a unit. Maximum sales within the relevant range are 15,000 units. $84 Required: 1. Prepare an estimated Income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Sale Cost of goods sold: Direct materials PUI We rear Ended December 31, 2017 Sales o Cost of goods sold: Direct materials Direct labor Factory overhead Total cost of goods sold E Gross profit Expenses: Selling expenses: Sales salaries and commissions a Advertising V Travel Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries O Supplies 40,600 x Miscellaneous administrative expense Total administrative expenses Total expenses Operating income 1. Use the data to compute the total costs. Remember that some of the costs have a fixed and a variable cost component. Check hy work