Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Wolsey Industries Inc. expects to maintain the same inventories at the end of 2013 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: Production costs: Direct materials Estimated Fixed Cost Estimated Variable Cost (per unit sold) $46 Direct labor 40 Factory overhead $200,000 20 Selling expenses: Sales salaries and commissions 110,000 Advertising 40,000 Travel 12,000 Miscellaneous selling expense 7,600 - Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense 132,000 10,000 13,400 1 aran non