Question

utject) - anastasisge. Assignments - Spring 2020 H Chapter 19 Assignment - Sprin... CengageNOW2 Online teac.. Math 144) Section 3.1 Homew... Result of solution using a eBook Calculator Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of safety, and Operating Leverage 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 Direct labor Factory overhead $1,125,300 Selling expenses Sales salaries and commissions Advertising 233,800 79,100 17,600 19,300 Travel Miscellaneous selling expense Administrative expenses: Office and officers' salaries Supplies 228,600 28,100 Miscellaneous administrative expense 26.440 Total $1,758,240 566 It is expected that 10,360 units will be sold at a price of $330 a unit Maximum sales within the relevant range are 13,000 units. Required: 1. Prepare an estimated income statement for 2017 Check My Work more Check My Work uses maning Previous

Answer 1

Belmain co. Estimated Income statement for the Year Ended December 31, 2017 3418,800 1664 020 1754,780 279100 17,600 Sales (10 360 units X 330 (10360 units X 330) Cost of Goods sold Direct material 248640 Direct Labour 165 760 fordony overheads 1249620 Total cost of Goods sold Gross Profit CA) Expenses: selling expenses 285,600 sales salaries & commission Advertising Travel 60740 Misc. selling expenses Total selling expenses Administrative expenses office and officer's salaries 228600 supdres 48820 muc, adminstrative expenses 57520 Total Administrative expende og 443040 334940 Total expenses 777,980 Income from operations (A-B) 976800

2. Contribution margin Ratio Sales - variable cost. / 08 3418800 - 683 760 3418,800 23. Break Even In Value sales = a fixed cost contribution Marg in percendage 1758240 $ 2197,800 0.80 0920 In unit Potal fixed cost contribution perunit. 1758240 - 2 6650 units 166+198) = 6660 unts Cup Chart) peilles Value . ® 6,6160 unts

S. Mara Margin of In units - safety Toro lov : Actual units sold - Break even sales a collinaomt Total con units 10360 - 6660 3700 units of buron a - In value Actual salew value - Break evensales 3418800 - 21978007 - 6. Ope-га Нид 7 & 1222,000 cooroll 900.01 2 everage & Ered costs Toal costs 000 3.2 17582400210.12 2442000 noord of eurers ondo