Contribution Margin, Break Even Sales, Cost Volume Profile Chart, Margin of safety, and Operating Leverage Wolsey Industries Inc, expects to maintain the same inventories at the end of 2093 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 $46 40 $200,000 20 110,000 40,000 Direct materials Direct labor Factory overhead Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous selling expense Administrative expenses Office and officers' salaries Supplies Miscellaneous administrative expense Total 12.000 7,600 1 132,000 10,000 13,400 $325,000 $120 It is expected that 21,075 units will be sold stance of 5160 a unit Maximum sales within the relevant range are 27.000 units Requires 1. Prepare an estimated income statement for 2013, Wolsey Industries Inc Estimated Income Statement For the Year Ended December 31, 2013 Cost of goods sold Total cost of goods sold O Gross profit Expenses Selling expenses llll Total selling expenses Administrative expenses Total administrative expenses Total selling expenses Administrative expenses o Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. Units units 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 9 Percentage (If required, round the percent to one decimal place, e.g. 15.4%) 6. Determine the operating leverage. If required, round your answer to one decimal place, c.g. 15.4