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 cos therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimat 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 Factory overhead $26 17 $170,500 13 Selling expenses: Sales salaries and commissions 35.400 Advertising 12,000 Travel 2,700 Miscellaneous selling expense 2,900 Administrative expenses; Office and officers' salaries Supplies Miscellaneous administrative expense 24,600 4,300 2 4,000 3 $266,400 572 Total t is expected that 7,400 units will be sold at a price of $144 a unit Maximum sales within the 9,000 units A 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7 Line Item Description Sales Cost of goods sold: Direct materials Direct labor 4 Factory overhead Total cost of goods sold Gross profit Expenses Selling expenses: Sales salaries and commissions Advertising Traver (7) Miscellaneous selling expense Total selling expenses Administrative expenses) Office and officery salaries Amount Amount Amount Omice and oicers Salaries Supplies Miscellaneous administrative expense Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? (Round to the nearest whole percent.) % 3. Determine the break-even sales in units and dollars. Units Dollars units 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales 5. What is the expected margin of safety in dollars and as a percentage of sales Dollars s Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. (Round to one decimal place.)