Contribution Margin, Break Even Sales, CostVolume-Profit Chart, Marino Safety, and Operating Litorage Belmain co expects to maintain the same inventories at the end of 2017 ss 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 $15 Direct labor 10 Factory overhead $155,500 0 Selling expenses Sales salaries and commissions 32,300 Advertising 10.900 Travel 2,400 Miscellaneous selling expense 2,700 Administrative expenses Office and officers' salaries 31,600 Supplies 3,900 1 Miscellaneous administrative expense 3,740 2 Total $243,040 542 It is expected that 5.530 units will be sold at a price of $140 a unit Maximum sales within the relevant range are 7.000 units Required: Required: 1. Prepare an estimated Income statement for 2017 Belmain Co Estimated Income Statement For the Year Ended December 31, 2017 Cost of goods sold Total cost of goods sold Gross profit Expenses Selling expenses Total selling expenses Administrative expenses mi mi Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio7 Round to the nearest whole percent. 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: Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place. %