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Phoenix Company's 2 0 1 9 master budget included the following fixed budget report. It is based on an expected production and sales volume of
Phoenix Company's master budget included the following fixed budget report. It is based on an expected production and sales volume of units.
The company's business conditions are improving. One possible result is a sales volume of 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 $ if this level is reached without increasing capacity?
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tablePHOENIX COMPANYForecasted Contribution Margin Income StatementFor Year Ended December Sales in unitstableContribution margin perunit$$Contribution marginFixed costsOperating income,$$$Operating income increase
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