K. B. Toys Inc. expects to maintain the same inventories at the end of 2023 as...

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K. B. Toys Inc. expects to maintain the same inventories at the end of 2023 as at the beginning of the year. It is expected that 20,575 units will be sold at a price of $167 a unit. Maximum sales within the relevant range are 27,000 units. Estimated Variable Cost per Unit Sold Categories Estimated Fixed Cost Production Costs: Direct Materials Direct Labor Factory Overhead 200,000 42 45 40 19 Selling Expenses: Sales Salaries and Commissions 110,000 10 Advertising 40,000 Travel 12,000 1 Miscellaneous Selling Expenses 7,600 Administrative Expenses: Office and Officers' Salaries 132,000 Supplies 10,000 Misc. Administrative Expenses 13,400 Total 525,000 3 1 119 a. Prepare an estimated income statement for 2023. b. What is the expected contribution margin ratio? (Include two spaces behind the decimal) c. Determine the break-even sales in units and dollars. d. Construct a cost-volume-profit chart indicating 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. K. B. Toys Inc. expects to maintain the same inventories at the end of 2023 as at the beginning of the year. It is expected that 20,575 units will be sold at a price of $167 a unit. Maximum sales within the relevant range are 27,000 units. Estimated Variable Cost per Unit Sold Categories Estimated Fixed Cost Production Costs: Direct Materials Direct Labor Factory Overhead 200,000 42 45 40 19 Selling Expenses: Sales Salaries and Commissions 110,000 10 Advertising 40,000 Travel 12,000 1 Miscellaneous Selling Expenses 7,600 Administrative Expenses: Office and Officers' Salaries 132,000 Supplies 10,000 Misc. Administrative Expenses 13,400 Total 525,000 3 1 119 a. Prepare an estimated income statement for 2023. b. What is the expected contribution margin ratio? (Include two spaces behind the decimal) c. Determine the break-even sales in units and dollars. d. Construct a cost-volume-profit chart indicating 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.