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) Production costs: Direct materials $19 Direct labor 13 Factory overhead $145,200 10 Selling expenses: Sales salaries and commissions 30,200 4 Advertising 10,200 Travel 2,300 Miscellaneous selling expense 2,500 4 Administrative expenses: Office and officers' salaries 29,500 Supplies 3,600 2 Miscellaneous administrative expense 3,300 2 Total $226,800 $54 It is expected that 8,400 units will be sold at a price of $108 a unit. Maximum sales within the relevant range are 11,000 units. 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 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? Dollars: % Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place