Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 18,000 units.

Question
Please do not reject question is not incomplete I used 2 questions to ask 1 complete one as it only allows 2 pictures to be uploaded. 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 20y7 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 cost of good 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.
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Estimated
Estimated Variable Cost
Fixed Cost
(per unit sold)
Production costs:
Direct materials
$50.00
Direct labor
30.00
Factory overhead
$350,000
6.00
Selling expenses:
Sales salaries and commissions
340,000
4.00
Advertising
116,000
Travel
4,000
Miscellaneous selling expense
2,300
1.00
Administrative expenses:
Office and officers' salaries
325,000
Supplies
6,000
4.00
Miscellaneous administrative expense
8,700
1.00
Total
$1,152,000
$96.00
It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are
18,000 units.
Expand
Transcribed Image Text

Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 18,000 units.

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