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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

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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 Fixed Cost (per unit sold) Production costs: Direct materials $26 Direct labor 17 Factory overhead $171,400 13 Selling expenses Sales salaries and commissions 35,600 Advertising 12,100 Travel 2.700 Miscellaneous selling expense 2,900 Administrative expenses Office and officers' salaries 34,000 Supplies 4,300 Miscellaneous administrative expense 4,040 3 Total $267.840 572 Previous Check My Work 2 22,00 Advertising 12,100 Travel 2,700 Miscellaneous selling expense 2,900 5 Administrative expenses: Office and officers' salaries 34,800 Supplies 4,300 2. Miscellaneous administrative expense 4,040 3 Total $267,840 $72 It is expected that 5,500 units will be sold at a price of $180 a unit. Maximum sales within the relevant range are 7,000 units Required: 1. Prepare an estimated income statement for 2017 Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Cost of goods soldi 8 3 Tattoo Previous Check My Work Emal instructor All work saved Save and out Submit Arsen for Grade 4 ed: 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Cost of goods sold: $ Total cost of goods sold Gross profit Expenses: Selling expenses: 3 Total selling expenses Administrative expenses: Check My rk All work und Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total expenses Income from operations 2. What is the expected contribution margin ratio? Round to the nearest whole p % 3. Determine the break-even sales in units and dollars. Units units Check My Work All work saved. 328 OCI 5 expenses Total expenses Income from operations 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. Check My Work

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