Question 1 is already solved. Use information from Question 1 to solve Questions 2-6.

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 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: Production costs: Direct materials Direct labor Factory overhead Selling expenses: Sales salaries and Advertising Travel commissions Miscellaneous selling expense Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total Estimated Fixed Cost $512,200 106,400 36,000 8,000 8,800 104,000 12,800 12,080 $800,280 Estimated Variable Cost (per unit sold) $28 $78 It is expected that 10,640 units will be sold at a price of $195 a unit. Maximum sales within the relevant range are 13,000 units. Required: 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7