Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Utilities ($45,000 is variable) Depreciation-Plant equipment (straight-line) 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 $3,000,000 $975,000 225,000 60,000 300,000 195,000 200,000 1,955,000 75,000 105,000 1,045,000 250,000 430,000 125,000 241,000 90,000 456,000 $ 159,000 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for the year could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) Contribution margin (per unit) Contribution margin Fixed costs Operating income (loss) 15,000 12,000