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 Variable Cost Estimated (per Fixed unit Cost sold) Production costs: Direct materials $13 Direct labor 9 Factory overhead $348,400 6 Selling expenses: Sales salaries and commissions 72,400 3 Advertising 24,500 Travel 5,400 Miscellaneous selling expense 6,000 3 Administrative expenses: Office and officers' salaries 70,800 Supplies 8,700 1 Miscellaneous administrative expense 8,120 Total $544,320 $36 It is expected that 8,640 units will be sold at a price of $144 a unit. Maximum sales within the relevant range are 11,000 units 1 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: $ Cost of goods sold Gross profit Expenses; Selling expenses Total selling expenses Administrative expenses: $ Total administrative expenses Total expenses Income from operations 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 96 3. Determine the break-even sales in units and dollars. Units units Dollars units 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? https://2.cengagenow.com/i/take Assignmentsignment Main do Progress Dollars: Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. Round to one decimal place