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 207 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 $19 13 10 $373,200 Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous selling expense 77,600 26,200 5,800 6,400 Administrative expenses: Office and officers' salaries 75,800 9,300 8,900 $583,200 Supplies $54 Total It is expected that 7,200 units will be sold at a price of $216 a unit. Maximum sales within the relevant range are 9,000 units. Required 1. Prepare an estimated income statement for 20Y7 Previous Net Check My Work 10 more Check My Work uses nemaining 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7 Sales Cost of goods sold: Total cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Total administrative expenses Total expenses Income from operations Check My Work 10 more Check My Work uses remaining Ema 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. W hat 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 ork 10 more Check My Work uses remaining