Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Soldner Health Care Products Inc. expects to maintain the same inventories at the end of 2016 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 Direct labor Factory overhead $17 12 9 $167,700 Selling expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense 34,900 11,800 2,600 2,900 4 3 Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total 34,100 4,200 3,880 $262,080 2 $48 It is expected that 6,240 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 8,000 units Required: 1. Prepare an estimated income statement for 2016. Soldner Health Care Products Inc. Estimated Income Statement For the Year Ended December 31, 2016 Cost of goods sold: Cost of goods sold Gross proft 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 percent