missing areas, belmain co.

Contribution Margin, Break Even Sales, Cost volume. Profit Chart, Margin of Safety, and Operating Loverage Balmain co, expects to maintain the same inventories at the end of 2017 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: Direct materials $50.00 Direct labor Factory overhead 30.00 6.00 $350,000 340,000 4.00 116,000 4,000 2.300 1.00 Selling expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense 4.00 325,000 6,000 8.700 1.00