Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 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: Instructions It is expected that 21,400 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 26,27 units. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. Start by using the contribution margin ratio ( P. round your answers to the nearest whole number. Units units Dollars 3. Determine the break-even sales in units and dollars. Start by using the contribution margin ra round your answers to the nearest whole number. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? If applicable, use amounts previously computed and then round your answers to the nearest whole number. Dollars Percentage 6. Determine the operating leverage. Found to one decimal place. Required: 1. Prepare an estimated income statement for 20Y8. Be sure to complete the statement heading. Refer to the list of Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (i) will automatically appear if it is required. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? Round your answers to the nearest whole number. 6. Determine the operating leverage. Round to one decimal place. Instructions Accounts, Labols and Amount Descriptions Instructions Estimated Estimated Fixed Cost Variable Cost (per unit sold) 2. Production costs: 3 Direct materials 4. Direct labor 5. Factory overhead 5194,000,00 $56.00 36.00 6. Selling expenses: 1. Sales salaries and commissions 1 Advertisino 42.000 .00 Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Insitrugtiong Accounts, Labols and Amounf Descriptions instructions I. Advertising 4. Trivel 14. Miscelianeors seding expense II Administative expenses. 17. Gifice and officers salaries 11 Supplies is Miscelaneoos administative expense 15 Total
