Phoenix Company's 2017 master budget Included the following fixed budget report it is based on an expected production and sales volume of 15,000 units. $3,000,000 $ 975,880 225,000 60,000 300,000 195,000 208, eee PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 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 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 1,955,000 1,045,000 75,000 105,000 250,000 430,000 125,000 241,000 90,000 456,000 159,000 $ Phoenix Company's actual income statement for 2017 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Next Phoenix Company's actual income statement for 2017 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (18,000 units) $ 3,648,900 Cost of goods sold Direct materials $1,185,000 Direct labor 278,000 Machinery repairs (variable cost) 63,090 Depreciation-Plant equipment (straight-line) 1300,000 Utilities (fixed cost is $147,500) 200, 500 Plant management salaries 2,236,500 Gross profit 1,411, 500 Selling expenses Packaging 82,500 Shipping 118,500 Sales salary (annual) 268,000 474,000 General and administrative expenses Advertising expense 132,000 Salaries 241,000 Entertainment expense 93,500 466,500 3 5 471,000 Income from operations 210,000mm Required: 1. Prepare a flexible budget performance report for 2017 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results Variances d Fav. Unfav. Vanable costs es Fixed costs 3 of 3 BRO