Phoenix Company s 2017

Check r Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units. PHOENIX COMPANY Fixed Budget Report $4,250, 000 Sales Cost of goods sold Direct materials Direct labor Machinery ropairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($51,000 is variable) Plant management salaries $1,190,000 170,000 68,000 315,000 201,000 200,000 2,144,000 2,106,000 Gross profit Selling expenses Packaging Shipping Sales salary (tixed annual amount) 85,000 119,000 270,000 474, 000 General and administrative expenses Advertising expense Salaries Entertainment expense 126,000 241,000 100,000 467,000 S1,165, 000 Income from operations Phoenix Company's actual income statement for 2017 follows. PHOENIX COMPANY Statement of Income fros Operations Sales (20,000 units) Cost of goods sold $5,048, 000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) utilities (tixed cost is $147,000) Plant management salaries 51,417,000 209,000 71,000 315,000 206,000 Gross profit Selling expenses 210,0002,428,000 2, 620,000 Packaging Shipping Sales salary (annual) 97,750 132,000 288.000 517,750 Ceneral and administrative expenses Advertising expense Salaries Entertainment expense 135,000 241,000 103,000 479,000 $1,623,250 Income from operations Required: 1. Prepare a flexible budget performance report for 2017