This webpage was reloaded because a problem occurred. CHAPTER 19 COST BOLUME PROFITA 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 Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $539,100 Direct labor Factory overhead Selling expenses: Sales salaries and commissions Advertising 112,000 37,900 8,400 9,300 Travel Miscellaneous selling expense Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense 109,500 13,500 12,700 $842,400 Total $72 It is expected that 7,800 units will be sold at a price of $288 a unit. Maximum sales within the relevant range are 10,000 units. This webpage was reloaded because a problem occurred. CHAPTER 19 COST BOLUME PROFITA Required: 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Total cost of goods sold Gross profit Expenses Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous selling expense Total selling expenses Administrative expenses This webpage was reloaded because a problem occurred. CHAPTER 19 COST BOLUME PROFITAS Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total administrative expenses Total expenses Income from operations S 3,380,000 X > Feedback Check My Work 1. Use the absorption costing format. Learning Objective 2. Learning Objective 3, Learning Objective 4, and Learning Objective 5. 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars