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Contribution Margin, Break-Even Sales, Cost-Valume-Profit Chart, Margin of Safety, and Operating Leverage this in mind, the various department heads were asked to submit estimates of
Contribution Margin, Break-Even Sales, Cost-Valume-Profit Chart, Margin of Safety, and Operating Leverage this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report af these estimates is as follows: It is expected that 7,920 units will be sold at a price of $336 a unit. Maximum sales within the relevant range are 10,000 units. 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20 Y7 Cost of goods sold: Total cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: 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 units Dollars s 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales
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