Wolsey Industries Inc. expects to maintain the same inventories at the end of 2093 as...
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Accounting
Wolsey Industries Inc. expects to maintain the same inventories at the end of 2093 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) 2 Production costs: Direct materials $46.00 40.00 $188,000.00 20.00 Direct labor Factory overhead Selling expenses: Sales salaries and commissions 103,000.00 8.00 Advertising 39,000.00 Travel 14,000.00 10. Miscellaneous selling expense 8,000.00 Administrative expenses: Office and officers' salaries 133,200.00 13 Supplies 11,000.00 4,00 14 Miscellaneous administrative expense 15,000.00 1.00 15 Total $511,200.00 $120.00 It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 26.100 units. Required: 1. Prepare an estimated Income statement for 20Y3. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive values. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? Round your answers to the nearest whole number 6. Determine the operating leverage. Round to one decimal place. Labels and Amount Descriptions Advertising Contribution margin Cost of goods sold Direct labor Direct materials Expenses Factory overhead Gross profit Income from operations Manufacturing margin Miscellaneous administrative expense Miscellaneous selling expense Office and officers' salaries Sales Sales salaries and commissions Supplies Total administrative expenses Total cost of goods sold Total expenses Total selling expenses Travel Variable cost of goods sold Sales Cost of goods sold: Direct materials Direct labor 1 Factory overhead 7 9 10 Gross profit Expenses: Selling expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense Total selling expenses Administrative expenses Office and officers' salaries Supplies Miscellaneous administrative expense Total administrative expenses Total expenses 21 Income from operations Feedback Points: 0/1 Check My Wor Se con tin gin. Contribution marin divided by sales equals contribution margin ratio 3. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number Units Dollars Feedback Check My Won Fred costs divided by unit contribution margin equals break-even sales in units. Fored costs divided by the contribution margin ratio equals the break even sales in dollars. 4. Construct a cost volume prolt chart on your own paper. What is the break-event sales? 5. What is the expected margin of safety in dollars and as age of sales? appoi, se amounts previously computed and then round your answers to the Dolars area whole number Percentage Points: 0/2 Feedback Check My Wors Expected e m ply by selling priceless break-even point l y by wring projeto mar i nos Sales minus sales al break-even point divided by sales quals margin of safety as a percentage of sales 6Determine the operating leverage Hound to one decimal Chuck My Work Contribution margin divided by the income from operation equal operating leverage







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