PR 19-6B Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart Margin of Safety, and operating Leverage OBJ 2, 3, 4, 5 SPREADSHEET Belmain Co. expects to maintain the same inventories at the end of 2014 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 2014. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 350,000 Factory overhead 6.00 Selling expenses: 40,000 Sales salaries and commissions 4.00 Advertising 116000 Travel 4,000 Miscellaneous selling expense 1.00 2,300 Administrative expenses: Office and officers salaries 325,000 Supplies 6,000 4.00 1.00 Miscellaneous administrative expense 8,700 $96.00 Total $1,152,000