ontribution Margin, Break-Even Sales,Cost-Volume-Profit Chart,Margin of Safety, andOperating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 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: Estimated Fixed CostEstimated Variable Cost (per unit sold)Production costs:Direct materials$17Direct labor12Factory overhead$626,7009Selling expenses:Sales salaries and commissions130,2004Advertising44,100Travel9,800Miscellaneous selling expense10,8003Administrative expenses:Office and officers' salaries127,300Supplies15,7001Miscellaneous administrative expense14,6002Total$979,200$48 It is expected that 10,200 units will be sold at a price of $192 a unit. Maximum sales within therelevant rangeare 13,000 units. Required:

1. Prepare an estimated income statement for 20Y7.

Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7$Cost of goods sold:$Cost of goods soldGross profit$Expenses:Selling expenses:$Total selling expenses$Administrative expenses:$Total administrative expensesTotal expensesIncome from operations$

2. What is the expectedcontribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. UnitsunitsDollarsunits 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.)% 6. Determine the operating leverage. Round to one decimal place.