Week 6 Assignment eBook 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 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 $19 Direct labor 13 Factory Overhead $145.200 10 Selling expenses: Sales salaries and commissions 30,200 4 Advertising 10,200 Travel 2,300 Miscellaneous Selling expense 2,500 Administrative expenses: Orice and officers' salaries 29,500 Supplies 3,600 2. Miscellaneous administrative expense 3,300 2 Total $226,800 $54 It is expected that 8,400 units will be sold at a price of $108 a unit. Maximum sales within the relevant range are 11,000 units. Required: 1. Prepare an estimated income statement for 2017. Belmain co Estimated Income Statement For the Year Ended December 31, 2047 Sales $ 907,200 Cost of goods sold: Direct materials Direct labor $ 159,600 109,200 Factory overhead 229,200 498,000 409,200 Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions 63,800 10,200 Advertising Travel Miscellaneous selling expense 2,300 36,100 112,400 Total selling expenses Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense 29.500 7,200 X 6,600 x Total administrative expenses Total expenses O A Income from operations Chuck My Work 1. Use the absorption costing format