Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the

beginning of the year.

Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the

beginning of the year.

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Beimain Co. expects to maintain the same inventories at the end of 20r7 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: It is expected that 7,560 units will be sold at a price of $150 a unit. Maximum sales within the relevant range are 9,000 units. Required: 1. Prepare an estimated income statement for 20y7. It is expected that 7,560 units will be sold at a price of $150a unit. Maximum sales within the relevant range are 9,000 units. Required: 1. Prenare an estimated income statement for 20Y7. 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. unts bohes 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? Di Pe p 6. Determine the operating leverage. Round to one decimal place. 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7 Cost of goods sold: Total cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: Percentage: (Round to the nearest whole percent.) 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. 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