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Chap 21 Homework Seved Required information The following information applies to the questions displayed below.) Part 2 of 3 Phoenix Company's 2019 master budget included
Chap 21 Homework Seved Required information The following information applies to the questions displayed below.) Part 2 of 3 Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. points $3,300,000 Skipped PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment straight-line) Utilities ($30,000 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 $ 930,000 225,000 60,000 330,000 180,000 210,000 1.935,000 1,365,000 References 75,000 105,000 235,000 415,000 150,000 241,000 85,000 476,000 $ 474,000 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is Chap 21 Homework A Required information 100, 210,800 1,935,800 1,365,000 Utilities (30, 15 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 75,000 105,000 235,800 Part 2 of 3 415,000 150,000 241,000 85,000 points 476,000 $ 474,000 Skipped Book Print 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $474,000 if this level is reached without increasing capacity? References PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15.000 18.000 Contribution margin (per unit) Contribution margin Fored costs Operating income
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