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:

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: It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the mocat nose are 26,175 units. Required: '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 uniess the amount is a calculation that results in a negative amount. For example: Not loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 2 What is the expected contivinminase? 3 Dotermine the break-evon 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? What is the expected margin of safety in dollars and as a percentage of sales? Round your answers to the nearest whole number. "Determine the operating leverage. Round to one decimal place. Accounts Advertising Direct materials Direct labor Factory overhead Miscellaneous selling expense Miscellaneous administrative expense Office and officers' salaries Sales Sales salaries and commissions Supplies Travel Labels December 31,20Y8 Expenses For the Month Ended December 31, 20 Y 8 For the Year Ended December 31, 20Y8 Amount Descriptions Cost of goods sold Gross profit Total selling expenses Total administrative expenses Total expenses Income from operations 1. Prepare an estimated income statement for 20 Y8. 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 (:) will automatically appear if it is required. 2. What is the expected 3. 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 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? Final Questions 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. Round to one decimal place