Phoenix companys 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENDK COMPANY Fixed Budget Report or Year Ended December 31, 2015 3,000,000 Cost of goods sold Direct materials 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation-plant equipment (straight-line 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,955,000 Gross profit 1,045,000 Selling expenses Packaging 75.000 105,000 Sales salary (fixed annual amount) 250,000 430,000 General and administrative expenses Advertising expense 125,000 241.000 90,000 456,000 Income from operations 159.000 Phoenix Company's actual income statement for 2015 follows. OENIX COM of Income from Operations For Year Ended December 31, 2015 Sales (18,000 units) 3,648,000 Cost of goods sold 1,185,000 278,000 Machinery repairs (variable cost) Depreciation plant equipment (straight-line) 300,000 Utilities (fixed cost is $147,500) 200,500 210,000 2,236,500 1,411.500 118,500 268,000 474,000