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:

1		Estimated Fixed Cost	Estimated Variable Cost (per unit sold)
2	Production costs:
3	Direct materials		$56.00
4	Direct labor		34.00
5	Factory overhead	$188,000.00	20.00
6	Selling expenses:
7	Sales salaries and commissions	102,000.00	6.00
8	Advertising	39,000.00
9	Travel	12,000.00
10	Miscellaneous selling expense	7,400.00	1.00
11	Administrative expenses:
12	Office and officers salaries	141,200.00
13	Supplies	8,000.00	2.00
14	Miscellaneous administrative expense	13,600.00	1.00
15	Total	$511,200.00	$120.00

It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 25,825 units.

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, 20Y8
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

fill out the income statement

Income Statement Shaded cells have feedba Estimated Income Statement For the Year Ended December 31, 20Y8 1 Sales 2 Cost of goods sold: 3 Direct materials 4 Direct labor 5 Factory overhead 6 Cost of goods sold 7 Gross profit 8 Expenses: 9 Selling expenses: 10 Sales salaries and commissions 11 Advertising 12 Travel 13 Miscellaneous selling expense 14 Total selling expenses 15 Administrative expenses: 16 Office and officers' salaries 17 Supplies 18 Miscellaneous administrative expense 19 Total administrative expenses 20 Total expenses 21 Income from operations 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 2 X units Dollars $210 X 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $2,100,000 X 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 $1,400,000 X Percentage 40%