progress-false eBook Print Item Contribution Margin, Break-Even Sales, Cost-Volume Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 2017 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 Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $30 Direct labor 20 Factory overhead $1,625,700 15 Selling expenses Sales salaries and commissions Advertising 337,800 114,300 Travel Miscellaneous selling expense 25,400 27,900 Administrative expenses: Office and officers salaries 330,200 Supplies 40,600 3 Miscellaneous administrative expense 38,260 Total $2,540,160 $84 It is expected that 11,760 units will be sold at a price of $420 a unit. Maximum sales within the relevant range are 15,000 units. Required: 1. Prepare an estimated income statement for 2017 Belmain Co. Estimated Income Statement For the Year Ended December 31, 2047 Sales Cost of goods sold Direct materials