Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 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:

Required:

A. Prepare an estimated income statement for 2016. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries.

B. What is the expected contribution margin ratio?

C. Determine the break-even sales in units and dollars.

D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?

E. What is the expected margin of safety in dollars and as a percentage of sales?

F. Determine the operating leverage. Round to one decimal place

What I have...