6 Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units. nts Skipped $3,600,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($48,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $1,040,000 240,000 64,000 315,000 208,000 200,000 eBook 2,067,000 1,533,000 Print 80,000 112,800 250,000 442,000 References 130,000 251,000 90,000 471,000 620,000 $ Phoenix Company's actual income statement for 2017 follows 54,338,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (19,000 units) Cost of goods sold Direct materials $1,252,080 Direct labor 294,000 Machinery repairs (variable cost) 68,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $158,000) 214,000 Plant management salaries 211,000 Gross profit Selling expenses Packaging 92,250 Shipping 125,500 Sales salary (annual) 268,000 General and administrative expenses Advertising expense 137,000 Salaries 251,000 Entertainment expense 93,500 Income from operations 2,354,000 1,984,000 485,750 481,500 $1,216,750 Me G xam 3 Part 2 Saved ---- 6 Required: 1. Prepare a flexible budget performance report for 2017 10 points Skipped PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results Variances Fav. / Unfav. eBook Variable costs Print References Fixed costs