Accounting 1B Written Assignment Chapter 19- Cost, Volume, Profit Instructions: 1. Print this Document 2. Write your name at the top 3. Complete the assignment by hand 4. Scan the completed assignment pages 2-3 5. Submit the assignment though Canvas Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 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: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: 46 40 20 Direct labor. 200,000 Selling expenses: 110,000 40,000 12,000 7,600 8 Travel Administrative expenses: 132,000 0,000 13.400 525,000 $120 It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Instructions Prepare an estimated income statement for 2016. Net income-S350,000 What is the expected contribution margin ratio? Determine the break-even sales in units and dollars. $2,100,000 What is the expected margin of safety in dollars and as a percentage of sales? 40% Determine the operating leverage 1. 2. 3. 4. 5. M. Baker Page 1