eBook 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 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 cost of goods sold. With this in mind, the vanous 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 $22 14 $241,900 11 Selling expenses: Sales salaries and commissions Advertising 50,300 17,000 Travel 3,800 Miscellaneous selling expense 4,200 Administrative expenses: Office and officers' salaries Supplies: Miscellaneous administrative expense 5,700 Total $378,000 49,100 6,000 2 2 560 It is expected that 5,400 units will be sold at a price of $150 a unit. Maximum sales within the relevant range are 11,000 units. Required: Check My Work Save and Exit Submit Assignment for Grading OENG D 141