phoenix Company predictsc

$3,300,000 PHOENIX COMPANY Find budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials $975,000 Direct labore Machinery repairs (variable cost) 225,000 Depreciation Plant equipment (straight- 45,000 line) 300,eee Utilities ($45, eee is variable) 195,00 Plant management salaries 200, eee Gross profit Selling expenses Packaging 75,eee Shipping 90,000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 10e, eee Salaries 230, eee Entertainment expense 98,000 Income from operations 1.948 eee 1,360,000 400,00 420, mee 540, eee $ 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 $540,000 If this level is reached without increasing capacity PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Yoar Ended December 31, 2018 Salos fin units) 15.000 18,000 Contribution margin (per unit) Contribution margin Fxed costs Operating income