Belmain Co. expects to maintain the same inventories at the end of 20Y7 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 Factory overhead $22 14 $425,100 11 Selling expenses: Sales salaries and commissions 88,300 Advertising 29,900 Travel 6,600 Miscellaneous selling expense 7,300 5+ 4 Administrative expenses: Office and officers' salaries 86,300 Supplies 10,600 2 Miscellaneous administrative expense 10,100 2 Total $664,200 $60 It is expected that 11,480 units will be sold at a price of $150 a unit. Maximum sales within the relevant range are 14,000 units. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Line Item Description Cost of goods sold: Total cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: Amount Amount Amount Administrative expenses: 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 $ Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. (Round to one decimal place.) %