File Home Insert Page Layout Formulas Data Review X fc Given Data P08-04A: 4A DEFGH IT PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Com $ 3,000,000 $ 975,000 225,000 60,000 300,000 195,000 200,000 1,955,000 1,045,000 Sales Cost of goods sold: Direct materials Direct labor Machinery repairs (variable cost) Depreciation - plant equipment Utilities ($45,000 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 17 75,000 105,000 250,000 430,000 18 19 20 21 22 125,000 241,000 90.000 456,000 159,000 $ Based on production and sales volume Units 15,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 $ 3.648,000 37 $ 1.185.000 278,000 63,000 300,000 200,500 210,000 40 41 42 43 2,236,500 1,411,500 Sales (18,000 units) Cost of goods sold. Direct materials Direct labor Machinery repairs (variable cost) Depreciation - Plant equipment Utilities (fixed cost is $147,500) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (annual) General and administrative expenses: Advertising expense Salaries Entertainment expense Income from operations 44 45 46 47 87.500 118,500 268,000 474,000 49 132,000 241,000 93,500 S 466,500 471.000 889 55 Check figures: (1) Variances Fixed costs Income SP08-01A S 36.000 U 9.000 F Given PO8-01A Ready Type here to search TIL Tuy Lujuu TUHU DU TILULIITIL E13 & & for A B C D E PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2017 CO Flexible Budget at 14,000 Flexible Budget at 16,000 11 9 Part 1 & Variable Total 10 Amount Fixed per Unit Costs 12 Sales 13 Variable costs. 14 Direct materials 15 Direct labor 16 Machinery repairs 17 Utilities 18 Packaging 19 Shipping 20 Total variable costs 21 Contribution margin 22 Fixed costs: 23 Depreciation - plant equipment 24 Utilities 25 Plant management salaries 26 Sales salary Advertising expense 28 Salaries 29 Entertainment expense 30 Total fixed costs 31 Income from operations 32 33 Part 3: 34 Operating Income increase for a 15,000 to 18,000 unit sales increase 36 Possible sales (units) 37 Contribution margin per unit 38 Total contribution margin 39 Less: Fixed costs 40 Potential operating income 41 vs. Budgeted income for 2015 42 Increase Units 43 Units 44 Alternate solution format 45 Unit increase 46 Contribution margin per unit 47 Increase in contribution margin 48 49 Part 4 50 Operating Income (oss) at 12,000 units 52 Possible sales (units) 53 Contribution margin per unit 54 Total contribution margin 55 Less Fixed costs 56 Potential operating income (loss) Units SPO8-01A Given P08-01A Ready O Type here to search