Calculator Contribution Margin, Break Even Sales, Cost Volume-Profit Chart, Margin of Safety, and Operating Leverage 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: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials Direct labor Factory overhead $685,700 Selling expenses: Sales salaries and commissions Advertising 142,500 48,200 10,700 11,800 Travel Miscellaneous selling expense Administrative expenses: Office and officers' salaries 139,300 17,100 Supplies Miscellaneous administrative expense 16,060 $1,071,360 Total