Intructions Labels and Amount Descriptions Income Statement Additional Questions Final Questions Instructions Wolsey Industries Inc expects to maintain the same inventories at the end of 2073 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 1 Estimated Variable Cost (per unit sold) Cost 1 Production costs 3 Direct materials $58.00 . Direct labor 32.00 Factory overhead $197.000.00 20.00 * Selling expenses 7 Sales salaries and commissions 109,000.00 6.00 . 41,000.00 9 Advertising Travel 10 Miscellaneous selling expense 11,000.00 7,200.00 1.00 It Administrative expenses 11 Office ant attirers salaries 126,800.00 12,000.00 2.00 1 Supplies Miscellaneous administrative expense 15 Total 14,600.00 1.00 $513.600,00 $120.00 mis expected that 21.400 units wil be sold at a price of $160 a unit. Maximum sales within the relevantage are 26,325 units Required: 1. Prepare an estimated income statement for 2073 Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries Enter al amounts as positive values 2 What is the expected contribuon marginali? 3. Determine the break-even sales in units and dollars Round your answers to the nearest whole number 4. Construct 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 Labels and Amount Descriptions Labels and Amount Descriptions Labels and Amount Descriptions Labels and Amount Descriptions Advertising Contribution margin Cost of goods sold Direct labor Direct materials Expenses Factory overhead Gross profit Income from operations Manufacturing margin Miscellaneous administrative expense Miscellaneous selling expense Office and officers' salaries Sales Sales salaries and commissions Supplies Total administrative expenses Total cost of goods sold Total expenses Total selling expenses Vanable cost of goods sold Income Statement . Prepare an estimated come statement for 2013. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries Enterall amounts as positive values Wolsey Industries Inc Estimated Income Statement For the Year Ended December 31, 2013 1 Label) 3 3 + 7 Labell + Selling expenses 30 11 12 13 14 Administrative expenses 16 17 15 19 0 Total expenses 21 Additional Questions 2. What is the expected contbution marginali? 3. Determine the break-even sales in units and dollars. Round you answers to the nearest whole number Units units Dollars 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 % 3 Determine the break-even sales in units and dollars. Round your answers to the nearest whole number Units units Dollars S 4. Construct a cost-volume-pront 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 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