Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 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: 1 2 Production costs: 3 Direct materials 4 Direct labor Estimated Estimated Fixed Cost Variable Cost (per unit sold) $58.00 38.00 $194,000.00 20.00 5 Factory overhead 6 Selling expenses: 7 Sales salaries and commissions 102,000.00 8.00 8 Advertising 42,000.00 - 9 Travel 8,000.00 10 Miscellaneous selling expense 7,800.00 1.00 11 Administrative expenses: 12 Office and officers' salaries 13 Supplies 14 Miscellaneous administrative expense 15 Total 135,200.00 10,000.00 2.00 14,600.00 1.00 $513,600.00 $128.00 It is expected that 21,400 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 26,000 units. Required: 1. Prepare an estimated income statement for 20Y3. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive values. 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. 1 2 (Label) 3 4 5 6 7 8 (Label) 9 Selling expenses: 10 11 12 13 14 15 Administrative expenses: 16 17 18 Wolsey Industries Inc. Estimated Income Statement For the Year Ended December 31, 20Y3 19 20 20 Total expenses 21 Additional Questions 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. Units Dollars units 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.