PR 196B 8 Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Obj. 2, 3, 4, 5 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: EXCEL TEPLATE EstimatedEstimated Variable Cost Fixed Cost (per unit sold Production costs Direct labor Selling expenses: Direct materials...wa $50.00 30.00 6.00 350.000 Sales salaries and commissions Travel Miscellaneous selling expense Office and officers' salaries.... Miscellaneous administrative expense 40,000 116,000 4,000 2.300 4.00 1.00 dministrative expenses: 325,000 6,000 Total 1,152,000 It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales withirn the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 20Y7