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Belmain 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 - $19 Direct labor 13 Factory overhead $340,100 10 Selling expenses: Sales salaries and commissions 70,700 4 Advertising 23,900 Travel 5,300 Miscellaneous selling expense 5,800 4 Administrative expenses: Office and officers' salaries 69,100 Supplies 8,500 2 Miscellaneous administrative expense 7,960 2 Total $531,360 $54 It is expected that 7,380 units will be sold at a price of $216 a unit. Maximum sales within the relevant range are 9,000 units. It is expected that 7,380 units will be sold at a price of $216 a unit. Maximum sales within the relevant range are 9,000 units. Required: 1,594,080 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Total cost of goods sold Gross profit Expenses: Selling expenses: Sales salaries and commissions Advertising 23,900 Travel 5,300 Miscellaneous selling expense 5,800 X Total selling expenses Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense 69,100 8,500 X 7,960 X Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 75 % 3. Determine the break-even sales in units and dollars. Units 3,280 units 708,480 Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 708,480 S 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: 56 % Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place