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: 2 Production costs: 5 Direct materials 4 Direct labor 5 Factory overhead Estimated Fixed Cost Estimated Variable Cost (per unit sold) $58.00 32.00 $192,000.00 20.00 Selling expenses: 7 Sales salaries and commissions 109,000.00 6.00 Advertising 41,000.00 ' Travel 11,000.00 10 Miscellaneous selling expense 7,200.00 1.00 Administrative expenses: 12 Office and officers' salaries 13 Supplies 14 Miscellaneous administrative expense 15 Total 126,800.00 12,000.00 2.00 14,600.00 1.00 $513,600.00 $120.00 It is expected that 21,400 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 26,325 units. Required: A. Prepare an estimated income statement for 2018. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. B. What is the expected contribution margin ratio? C. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number. 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? Round your answers to the nearest whole number. F. Determine the operating leverage. Round to one decimal place. Labels and Amount Descriptions Advertising Contribution margin Cost of goods sold December 31, 20Y8 Direct labor Direct materials Expenses Factory overhead For the Month Ended December 31, 20Y8 For the Year Ended December 31, 2018 Gross profit Income from operations Manufacturing margin Miscellaneous administrative expense Miscellaneous selling expense Office and officers' salaries Sales Sales salaries and commissions Supplies Total administrative expenses Total expenses Total selling expenses Travel Variable cost of goods sold A. Prepare an estimated income statement for 20Y8. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. 1 2 (Label) 3 4 5 6 7 8 (Label) 9 Selling expenses: 10 11 12 13 14 15 Administrative expenses: 16 17 18 19 20 Total expenses 21 Wolsey Industries Inc. Estimated Income Statement (Label) B. What is the expected contribution margin ratio? % C. Determine the break-even sales in units and dollars. Start by using the contribution margin ratio (part B.) and then round your answers to the nearest whole number. Units units 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? If applicable, use amounts previously computed and then round your answers to the nearest whole number. Dollars Percentage $ % F. Determine the operating leverage. Round to one decimal place