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 durim the year. A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: 6 6 Direct materials $28 Direct labor 19 Factory overhead $922,500 14 Selling expenses: Sales salaries and commissions 191,700 Advertising 64,900 Travel 14,400 Miscellaneous selling expense 15,900 Administrative expenses Office and officers' salaries 187,400 Supplies 23,100 2 Miscellaneous administrative expense 21,540 3 Total $1,441,440 $78 It is expected that 7,920 units will be sold at a price of $390 a unit Maximum sales within the relevant range are 10,000 units Required: 1. Prepare an estimated income statement for 2017. Q Required: 1. Prepare an estimated Income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2047 Sales Cost of goods sold: Direct materials Direct labor 9 Factory overhead