Chapter 20 Homework 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 $22 Factory overhead $269,600 11 Selling expenses: Sales salaries and commissions 56,000 Advertising 19,000 Travel 4,200. Miscellaneous selling expense 4,600 Administrative expenses: Office and officers' salaries Supplies: Miscellaneous administrative expense Total 54,800 6,700 6,300 $421,200 2 2 $60 5114 IN It is expected that 10,920 units will be sold at a price of $120 a unit. Maximum sales within the relevant range are 14,000 units. Required: