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 Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials 17 Direct labor Factory overhead $344,100 Selling expenses: Sales salaries and commissions 71.500 Advertising 24,200 Travel 5,400 Miscellaneous selling expense 5.900 Administrative expenses: Office and officers' salaries 69.900 Supplies 8,600 Miscellaneous administrative expense 8,000 Total $537,600 It is expected that 8.800 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 11,000 units. It is expected that 8,800 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 11,000 units Required: 1. Prepare an estimated income statement for 2017, Belmain Co. Estimated Income Statement For the Year Ended December 31, 2047 Coot of goods sold: Total cost of goods sold Gross pront Expenses Selling expenses Total selling expenses Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. Units S 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: Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place