mework 2 Phoenix Company's 2017 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,300,000 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 ($45,000 is variable) Plant managenent salaries Gross profit Selling expenses Packaging Shippine Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 900,000 210,000 45,000 315,000 195,000 180,000 1 345,000 1,455,000 75,800 105,000 235,000 415,000 125,000 230,000 B5,000 140,000 $ 600,000 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 2017 budgeted amount of $600.000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin income Statement For Year Ended December 31, 2017 Sales on units) 15,000 18.000 Contribution margin (per unit) Contribution margin Fixed costs Operating incomo