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Problem 19(5)-6BName: Section: Score: 100%Key Code: [Key code here]Answers are entered in the cells with gray backgrounds.Cells with non-gray backgrounds are protected and cannot be edited.An asterisk (*) will appear to the right of an incorrect entry. 1.Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7Sales$ 2,880,000 Cost of goods sold:Direct materials$ 600,000 Direct labor360,000 Factory overhead422,000 Cost of goods sold1,382,000 Gross profit$ 1,498,000 Expenses:Selling expensesSales salaries and commissions$ 388,000 Advertising116,000 Travel4,000 Miscellaneous selling expense14,300 Total selling expenses$ 522,300 Instructions
Administrative expenses:Office and officers' salaries$ 325,000 Supplies54,000 Miscellaneous administrative expense20,700 Total administrative expenses399,700 Total expenses922,000 Income from operations$ 576,000 2.Contribution margin ratio:Sales$ 2,880,000 Variable costs12,000 $96 1,152,000 Contribution margin$ 1,728,000 Sales¸ 2,880,000 Contribution margin ratio60.0% 3.Break-even sales:Fixed costs$ 1,152,000 Unit contribution margin$240 $96 ¸ $144 Break-even sales (units)8,000 Sale price´ $240 Break-even sales (dollars)$ 1,920,000 4.For each unit level of sales, enter the total sales dollars and total costs. The chart at right will be plotted as you enter the amounts.