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 Estimated Variable Cost (per unit sold) Fixed Cost Production costs: Direct materials $24 Direct labor 16 Factory overhead $707,100 12 Selling expenses: Sales salaries and commissions 146,900 5 Advertising 49,700 Travel 11,000 Miscellaneous selling expense 12,200 4 Administrative expenses: Office and officers' salaries 143,600 Supplies 17,700 2 Miscellaneous administrative expense 16,640 3 Total $1,104,840 $66 It is expected that 8,680 units will be sold at a price of $264 a unit. Maximum sales within the relevant range are 11,000 units. Required: 1. Prepare an estimated income statement for 2017. 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Total cost of goods sold 00 Gross profit Expenses: Selling expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense $o Total selling expenses Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total administrative expenses o Total expenses 00 Income from operations