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 2047 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 $30 Direct labor 20 Factory overhead $1,074,100 15 Selling expenses: Sales salaries and commissions 223,200 7 Advertising 75,500 Travel 16,800 Miscellaneous selling expense 18,500 6 Administrative expenses: Office and officers' salaries 218,200 Supplies 26,900 3 Miscellaneous administrative expense 25,120 3 : 1+ OA Charco Total $1,678,320 $84 It is expected that 10,360 units will be sold at a price of $336 a unit. Maximum sales within the relevant range are 13,000 units. Required: 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7 Cost of goods sold: Total cost of goods sold II Gross profit Expenses: Selling expenses: Previous Next GTOSS pront Expenses: Selling expenses: Total selling expenses Administrative expenses: O Total administrative expenses Total expenses Operating income 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 0 Total administrative expenses o Total expenses I Operating income 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 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