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 Fixed Cost Estimated Variable Cost (per unit sold) $50.00 30.00 6.00 $350,000 340,000 4.00 Production costs: Direct materials Direct labor Factory overhead Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous selling expense Administrative expenses: omice and officers salaries Supplies Miscellaneous administrative expense 116,000 4,000 2.300 1.00 325,000 6,000 4.00 8,700 1.00 Total $1,152,000 596.00 it is expected that 12,000 units will be sold at a price of $240 a unit. Maumum sales within the relevant range are 18.000 units, Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold: HU, Huy Total cost of goods sold Gross profit Expenses Selling expenses Total selling expenses Administrative expenses o Total administrative expenses Total expenses 0 Income from operations 2. What is the expected contribution margin ratio? 60 3. Determine the break-even sales in unit and dollars Units 8,000 units Dollars $1,800,000 4. Construct a cost-volume-profit chart on your own peper. What is the break even sales? $1,920,000 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars 960,000 Percentage (If required, round the percent to one decimal X place, e.g. 15.4%) 6. Determine the operating leverage: 33