Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,600,000 Sales Cost of goods sold $880,000 320,000 48,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line 330,000 Utilities ($32,000 is variable) Plant management salaries 182,000 215,000 1,975,000 1,625, 000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 64,000 96,000 260,000 420,000 General and administrative expenses Advertising expense Salaries 127,000 241,000 110,000 478,000 $ 727,000 Entertainment expense Income from operations Phoenix Company's actual income statement for 2017 follows PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 $4,353,000 Sales (19,000 units) Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (fixed cost is $148,000) Plant management salaries $1,061,000 388,000 48,000 330,000 185,250 224,000 2,236,250 2,116,750 Gross profit Selling expenses Packaging Shipping Sales salary (annual) 74,000 107,000 277,000 458,000 General and administrative expenses Advertising expense Salaries 135,000 241,000 113,000 489,000 $1,169,750 Entertainment expense Income from operations