Question 19. Cost-volume-profit; volume defined in sales dollars. An excerpt from the income state- ment of the Kelly Company follows. Estimated fixed costs in Year 1 are $660,000. KELLY COMPANY Income Statement Year Ended December 31, Year 1 Sales $3,000,0 00 Operating Expenses: Cost of Goods $1,425,0 Sold 00 Selling 450,000 Costs .. Administrative 225,000 Costs Total Operating 2,100,00 Costs 0 Profit . $ 900,000