CHAPTER 5 HW cBook Print Item Contribution Margin, Break Even Sales, Cost Volume-Profit Chars, Margin of Safety, and Operating Leverage Bel maln Co. expects to maintain the same Inventories at the end of 2047 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 thelr 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 $50.00 Direct labor 30.0D Factory overhead 5350,00D 5. Selling expenses: Sales salaries and commissions 340,000 4.00 Advert sing Travel 116.000 4.000 2.300 Miscellaneous selling expense 1.00 Administrative expenses office and officers' salaries 325,000 Supplies 4.00 6.000 8.700 Miscellaneous administrative expense 1.00 Total 51,152,000 $95.00 It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 12,000 units. Check My Work