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 cost for their departments during the year. A Summary of these estimates is as follows:

clock Punten Selma Co, expects to maintain the same inventories at the end of 207 as at the beginning of the year. The total of all production costs for the year is therefore sumed 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 524 Direct labor 16 Factory overhead $504,100 12 Selling expenses: Sales salaries and commissions 63,200 5 Advertising 21.400 Travel 4,800 Miscellaneous selling expense 5,200 Administrative expenses: Office and officers salaries 61,500 Supplies 7,600 2 Miscellaneous administrative expense 7,100 3 Total $475,200 $66 It is expected that 10,800 units will be sold at a price of $132 a unit. Maximum sales within the relevant range are 14,000 units Previous Check My Work 2 more Check My Work uses remaining 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 00 bid Total selling expenses Administrative expenses o Check My Work 2 more Check My Work uses remaining eBook Print Item 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 units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? S 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 operatina leverage Round to one decimal place. Check My Work 2 more Check My Work uses remaining 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. Check My Work 2 more Check My Work uses remaining All work saved. th4-4.jpg Ch4 -3.jpg A Ch4 -2.jpg O ! acer