I would appreciate any help on this. Thank you for time. Also, sorry if the photos are choppy, I tried my best to make them not.
Instructions:
Labels and Amount Descriptions:
Income Statement:
Additional Questions:
Final Questions:
Instructions Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 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 report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials $66.00 4 Direct labor 32.00 5 Factory overhead $190,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 102,000.00 6.00 8 Advertising 37,000.00 Instructions 9 Travel 1 10,000.00 10 Miscellaneous selling expense 7,800.00 1.00 11 Administrative expenses: 12 Office and officers' salaries 138,400.00 13 Supplies 12,000.00 2.00 14 Miscellaneous administrative expense 14,000.00 1.00 15 Total $511,200.00 $128.00 It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 25,900 units. Required: A. Prepare an estimated income statement for 20Y8. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. B. What is the expected contribution margin ratio? C. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number. D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? E. What is the expected margin of safety in dollars and as a percentage of sales? Round your answers to the nearest whole number. F. Determine the operating leverage. Round to one decimal place. Labels and Amount Descriptions Advertising Contribution margin Cost of goods sold December 31, 20Y8 Direct labor Direct materials Expenses Factory overhead For the Month Ended December 31, 20Y8 For the Year Ended December 31, 20Y8 Gross profit Income from operations Manufacturing margin Miscellaneous administrative expense Miscellaneous selling expense Office and officers' salaries Sales Sales salaries and commissions Supplies Total administrative expenses Total expenses Total selling expenses Travel Variable cost of goods sold Income Statement A. Prepare an estimated income statement for 20Y8. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Wolsey Industries Inc. Estimated Income Statement (Label) 1 2 (Label) 3 4 5 6 7 8 (Label) 9 Selling expenses: 10 11 12 13 14 15 Administrative expenses: 16 17 18 19 20 Total expenses 21 Additional Questions B. What is the expected contribution margin ratio? % C. Determine the break-even sales in units and dollars. Start by using the contribution margin ratio (part B.) and then round your answers to the nearest whole number. Units units Dollars D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $ Final Questions E. What is the expected margin of safety in dollars and as a percentage of sales? If applicable, use amounts previously computed and then round your answers to the nearest whole number. Dollars $ Percentage % F. Determine the operating leverage. Round to one decimal place
