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: Production costs: Direct materials Direct labor Factory overhead Estimated Fixed Cost Estimated Variable Cost (per unit sold) $24 16 $325,200 12 Selling expenses: Sales salaries and commissions 67,600 Advertising 22,900 Travel 5,100 Miscellaneous selling expense 5,600 Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense. Total 66,100 8,100 2 7,600 3 $508,200 $66 It is expected that 6,600 units will be sold at a price of $220 a unit. Maximum sales within the relevant range are 8,000 units.