Phoenix Company's 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 3,000,000 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries S 975,000 225,000 60,000 300,000 195,000 200,000 1,955,000 Gross profit Selling expenses 045,000 Packaging Shipping Sales salary (fixed annual amount) 75,000 105,000 250,000 Phoenix Company's actual income statement for 2015 follows 430,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2015 General and administrative expenses Advertising expense Salaries Entertainment expense 125,000 241,000 90,000 Sales (18,000 units) Cost of goods sold 3.648,000 456,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation plant equipment (straight-line) Utilities (fixed cost is $147,500) Plant management salaries S 1,185,000 278,000 63.000 300,000 200,500 Income from operations S 159,000 210,000 2.236,500 Gross profit Selling expenses 1411,500 Packaging Shipping Sales salary (annual) 87,500 118,500 268,000 474,000 General and administrative expenses Advertising expense Salaries Entertainment expense 132,000 241,000 93,500 466,500 Income from operations $ 471,000