-- Contribution Marin, Break Even Sales, Cost Volume-Profit Chart, Margin of Safety, and Operating tewerage Beliminar 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 cent of goods sold with this in mind, the various department heads were asked to submit estimates of the costs for the departments during the year. A summary report of these estimates as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs Direct materials $22 Direct labor 14 Factory overhead $501,800 11 Selling expenses Sales salaries and commissions 104.300 Advertising 35,300 Travel 7.800 Misolaneous selling expense 3,600 Administrative expenses Office and officers salaries 101.900 Supplies 12 500 2 Miscellaneous administrative expense 11,800 2 Total $734,000 500 4 T It is expected that 9.00 units sold at a price of $200 unit Maximum sales within the devant inde are 12.000 units It is expected that 9,600 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 12,000 units. Required: 1. Prepare an estimated income statement for 2017 Belmain Co. Estimated Income Statement For the Year Ended December 31, 2047 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Total cost of goods sold Gross profit Expenses: Selling expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense SUUR Pem Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total administrative expenses Total expenses Operating income Feedback Check My Work 1. Use the data to compute the total costs. Remember that some of the costs have a fixed and a variable cost 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 90 3. Determine the break-even sales in units and dollars. inite inite 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 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. % >