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 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be e 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 $46 Direct labor 40 Factory overhead $200,000 20 Selling expenses: Sales salaries and commissions 110,000 8 40,000 Advertising Travel Miscellaneous selling expense 12,000 7,600 1 Administrative expenses: Office and officers' salaries 132,000 Supplies 10,000 4 Miscellaneous administrative expense 13,400 1 Total $525,000 $120 It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Required: 1. Prepare an estimated income statement for 20Y3. Wolsey Industries Inc. Estimated Income Statement For the Year Ended December 31, 2043 Cost of goods sold: Total cost of goods sold OQ Gross profit Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? % 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 (If required, round the percent to one decimal place, e.g. 15.4%.) 6. Determine the operating leverage. If required, round your answer to one decimal place, e.g. 15.4