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ontribution Margin, Breake-Even Sales, Cost-Voluma-Profit Chart, Margin of Safety, and Operating Leversge telmain Co. expects to maintain the same inveritories at the end of 20Y7

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ontribution Margin, Breake-Even Sales, Cost-Voluma-Profit Chart, Margin of Safety, and Operating Leversge telmain Co. expects to maintain the same inveritories at the end of 20Y7 as at the beginning of the yeae The total of all production costs for the year is therefore assumed to be equal to he cost of goods sold. With this in mind, the various department heads were asked to submit estmates of the costs for their departments during the year. A summary report of these estimates is as foliows: It is expected that 8,140 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 10,000 units. Required: 1. Prepare an estimated income statement for 20Y7. percent: 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and 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.) %

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