Calculator Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Instructions Labels and Amount Descriptions Income Statement Additional Questions Instructions Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 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) $58.00 38.00 20.00 $194,000.00 2 Production costs: Direct materials * Direct labor Factory overhead 6 Selling expenses: 7 Sales salaries and commissions & Advertising Travel 10 Miscellaneous selling expense 11 Administrative expenses: 8.00 102,000.00 42,000.00 8,000.00 7,800.00 1.00 Previous Next SETTES TIS 11 Administrative expenses 12 Office and officers' salaries 1 Supplies 14 Miscellaneous administrative expense 135,200.00 10,000.00 14,600,00 200 1.00 15 Total $513,600.00 $128.00 It is expected that 21.400 units will be sold at a price of $160 a unit Maximum sales within the relevant range are 26,000 units. Required: A. Prepare an estimated income statement for 2016 Refer to the Labels and Amount Descriptions is provided for the exact wording of the answer choices for text entries. B. What is the expected contribution margin ratio? C. Determine the break even sales in units and dollars. Round your answers to the nearest whole number D. Construct a cost volume profit chart on your own paper. What is the break even sales? E. What is the expected margin of safety in dollars and as a percentage of sales? Round your answers to the newest whole number F. Determine the operating leverage Round to one decimal place Income Statement A Precare an estimated income statement for 2016. Refer to the labels and Amount Descriptions list provided for the exact wording of the answer choices for text Calculator Wolsey Industries Inc. Estimated Income Statement For the Year Ended December 31, 2016 2 (Label) (Label) Selling expenses: 15 Administrative expenses: Additional Questions What is the expected contribution marginatio? C Determine the break even sales in units and dollars. Start by using the contribution margin ratiopart) and then round your answers to the nearest whole number Units Dollars D. Construct a cost volume profil chart on your own payer. What is the break-even sale! Final Questions E What is the expected margin of safely in dollars and as a percentage of sales? If applicable use amounts previously comuted and the round your answers to the nearest whole number, Dollars Percentage I. Determine the operating leverage. Round to one decimal place