Problems Schturman Industries Inc. expects to maintain the same inventories at the end of 2020 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: It is expected that 20,575 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Categories Estimated Fixed Cost Estimated Variable Cost per Unit Sold Production Costs: Direct Materials 45 Direct Labor Factory Overhead 39 200,000 19 Selling Expenses: Sales Salaries and Commissions 110,000 9 Advertising 40,000 Travel 12,000 Miscellaneous Selling Expenses 7,600 Administrative Expenses: Office and Officers' Salaries 132,000 Supplies 10,000 Misc. Administrative Expenses 13,400 1 Total 525,000 117 Instructions a. Prepare an estimated income statement for 2020. b. What is the expected contribution margin ratio? c. Determine the break-even sales in units and dollars. d. Construct a cost-volume-profit chart indicating the break-even sales. e. What is the expected margin of safety in dollars and as a percentage of sales? f. Determine the operating leverage.