R 21-6B Contribution margin of safety, and operating leverage Belmain Co ning of the year ution margin, break-even sales, cost-volume-profit chart, OBJ. 2, 3, 4, o expects to maintain the same inventories at the end of 20Y7 as at the begin- e total of all production costs for the year is therefore assumed to be the cost of goods sold. With this in mind, the various department heads were imates of the costs for their departments during the year. A summary Th asked to submit estin report of these estimates is as follows: Estimated Variable Cost (per unit sold) Estimated Fixed Cost Production costs: $50.00 30.00 6.00 350,000 Factory overhead Selling expenses 4.00 340,000 116,000 4,000 2,300 Advertising Travel Miscellaneous selling expense 1.00 . . . Administrative expenses: 325,000 6,000 8,700 $1,152,000 salaries. . 4.00 1.00 $96.00 . Total Continued) Cost-Volume-Profit Analysis It is expected that 12,000 units will be sold at a price of $240 a unit. Maxim within the relevant range are 18,000 units. um sales wrap Ten 10 Arnal Conditional Forma Formatting Tab Styles Number Font For the Year Ended December 31, 20Y7 Sales Cost of goods sold Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses Selling expenses Sales salaries and commissions Travel Miscellaneous selling expense Total selling expenses Administrative expenses Office and officers' salaries Supplies Miscellaneous administrative expense Total administrative expenses Total expenses Income from operations Pr. 21-68 3 2