Comtritution margin, break$-$even sales, cost$-$voumb$-$profit chart, mangin of safaty, and operating leverapt

Belmain Co$.$ expects to maintain the same inventories at the end of $\backslash (20\backslash$gamma $7\backslash )$ as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cont 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 summory report of these estimates is as follows:Estimated Fixed CostEstimated Variable Cost $($per unit sold$)$

It is expected that $7,000$ units will be soid at a price of $\backslash (\backslash$$ $135\backslash )$ a unit. Maximum sales within the relevant ranpe are $3,000$ units.

Required: $1.$ Prepare an estimated income statement for $\backslash (20\backslash$gamma $7\backslash ).$

Belmain Co$.$

Estimated Income Statement For the Year Ended December $31,\backslash (20$ Y $7\backslash )$Sales$4$

$4$Expenses:

Selling expenses:$\backslash (\backslash$$ $\backslash )5$

$2.$ What is the expected contribution margin catio? $($Round to the nearest whole percent.$)\backslash (\backslash \%\backslash )$

$3.$ Determine the break$-$even sales in units and dollars.

Units units

Dollars $\backslash ($ : $\backslash )$ J

$4.$ Constnict a cost$-$volume$-$profit chart on your own paper. What is the break$-$even sales?

$\backslash$$

$5.$ What is the expected margin of safety in dollars and as a percentage of sales?

Dollars :

Percentage: $($Round to the nearest whole percent.$)$

$6.$ Determine the operating Everage, $($Round to one decimal place.$)$