Contribution Margin, Break Even Sales, Cost Volume-Pront 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 Estimated Variable Cost Fixed Cost (per unit sold) Production costs $26 Direct materials 17 $294,900 13 6 61,300 20,700 4,600 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 5,100 59,900 7,400 2 3 6,900 $460,800 $72 Total It is expected that 9,600 units will be sold at a price of $144 a unit. Maximum sales within the relevant range are 12,000 units. Total It is expected that 9,600 units will be sold at a price of $144 a unit. Maximum sales within the relevant range are 12,000 units. Required: