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Organic Health Care Products Inci expects to maintain the same inventories at the end of 20m8 as at the beginning of the yeat The total
Organic Health Care Products Inci expects to maintain the same inventories at the end of 20m8 as at the beginning of the yeat The total of all production costs for the year is therefore assumed to be equal to the cost of goots sold. With this in mind, the varfaus department heads were asked to submit estimates of the costs for their departments during 20Y8. A summary report of these estimates is as follows: It is expected that 400,000 units will be sold at a price of $25 a unit. Maximum sales within then rimevant ranger are 500,000 unts: 1. Prepare an estimated income statement for 20 Y8. 2. What is the expected contribution margin ratio? % 3. Determine the break-even sales in units and in dollars. a. Break-even sales in units: 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
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