eBook Contribution Margin, Break-Even Sales, Cost-Volume-Profit Graph, and Operating Leverage Organic Health Care Products Inc. expects to maintain the same inventories at the end of 2048 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 2078. A summary report of these estimates is as follows: Estimated Variable Cost Estimated Fixed Cost (per unit sold) Production costs: Direct materials $ 8.00 3.00 Direct labor Factory overhead $ 200,000 1.50 Selling expenses: 1,450,000 Advertising Sales salaries and commissions 93,000 1.85 Travel 340,000 Miscellaneous selling expense 2,000 0.10 300,000 Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense 10,000 0.50 0.05 5,000 $15.00 Total $2,400,000 It is expected that 400,000 units will be sold at a price of $25 a unit. Maximum sales within the relevant range are 500,000 units Previous Check My Work Emal instructor Save and Stent for Grading It is expected that 400,000 units will be sold at a price of $25 a unit Maximum sales within the relevant range are 500,000 units. Instructions: 1. Prepare an estimated Income statement for 20Y8. Organic Health Care Products Inc. Estimated Income Statement For the Year Ended December 31, 20Y8 Cost of goods sold: Cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: Check My Work Previous Emilier Save and Sub Assamento Grading eBook Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income Feedback Check My Won 1. Use the absorption costing format. 2. What is the expected contribution margin ratio? 409 3. Determine the break-even sales in units and in dollars. 240,000 units a. Break-even sales in units b. Break-even sales in dollars: 4. Construct a cost-volume-profit chart on your own paper 5. Determine the operating leverage. Round your answer to one decimal place Previous Check My Work Erastru Submit Anment for Grading