Belmain co. expects to maintain the same inventories at the end of 2016 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 costsestimated variable cost (per unit sold)production costs: direct materials$50.00direct labor.00factory overhead.$350,0006.00selling expenses: sales salaries and commissions.340,0004.00advertising1 16,000--travel4,000--miscellaneous selling expense2,3001.00administrative expenses: office and officers’ salaries..325,000--supplies..6,0004 .00miscellaneous administrative expense8,7001.00total$1,152,000$96. 00it 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. instructions1. prepare an estimated income statement for 2016.2. what is the expected contribution margin ratio? 3. determine the break-even sales in units and dollars.4. construct a cost-volume-profit chart indicating the break-even sales.5. what is the expected margin of safety in dollars and as a percentage of sales? 6. determine the operating leverage.