D H 4ABC Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage 2 3 Youngsville Industries Inc, expects to maintain the same inventoties at the end of 2015 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 teport of these estimates is as follows: 4 5 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 6 7 8 9 $48 $38 $25 10 $150,000 11 12 $10 13 14 Production Costs: Direct Materials Direct Labor Factory Overhead Selling Expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense Administrative Expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total $125,000 $50,000 $15,000 $10,000 $2 15 16 17 18 19 $140,000 $10,000 $10,000 $510,000 $5 $2 20 $130 21 It is expected that 22,175 units will be sold at a price of $170 a unit Maximum sales within the relevant range are 27,500 units. 22 Info Input It is expected that 22,175 units will be sold at a price of $170 a unit Maximum sales within the relevant range are 27,500 units INSTRUCTIONS. Using formulas/functions wherever possible, complete the following on the Input Tab 1) Prepare an estimated income statement for 20Y5. 2) What is the expected contribution margin ratio? 3) Determine the break-even sales in units and collars. 4) Construct a cost-volume-profit chart indicating the break-even sales. 5) What is the expected margin of safety in dollars and as a percentage of sales? 6) Determine the operating leverage