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Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safoty, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Yr
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safoty, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Yr as at the beginning of the year. The total of all production costs for the vear 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: It is expected that 10,640 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 13,000 units. Required: 1. Prepare an estimated income statement for 20 r7. 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper, what is the break-even sales? 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper, what is the break-even sales
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