QUESTION 3 (20 MARKS) Steamboat Company expects to maintain the same inventories at the end of 2021 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 good sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2021. A summary report of these estimates is as follows: Estimated Total Fixed Cost Estimated Variable Cost $ (S) (per unit sold) Production costs: Direct Materials 15.00 Direct Labour 10.00 Manufacturing Overhead 210,000 4.50 Selling expenses: Sales salaries and 42,500 2.20 commissions Advertising 14,500 Travelling 3,500 Miscellaneous 2,500 1.80 administrative expenses Administrative expenses: Office and office salaries 70,000 Supplier 6000 0.75 Miscellaneous 11.000 1.75 administrative expenses Total 360,000 36.00 It is expected that 30,000 units will be sold at a price of $60 a unit. Maximum sales within the relevant range are 45,000 units. Required: a) Prepare an estimated profit statement for 2021 [7 MARKS) b) Compute expected contributed margin ratio [ 4 MARKS] c) Compute the breakeven point in units. [ 4 MARKS] d) Determine the amount of sales (units) that would be necessary under proposed program to realize the $6,120,000 of income from operations that will earn in 2021. [ 4 MARKS] e) Compute margin in safety in sales dollar [ 1 MARK)