Phoenix Companys 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units.

Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 4,050,000 Sales Cost of goods sold $1,080,000 180,000 72,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line 315,000 Utilities ($54,000 is variable) Plant management salaries 204,000 230,000 2,081,000 1,969,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 126,000 270,000 486,000 General and administrative expenses Advertising expense Salaries Entertainment expense 132,000 251,000 90,000 473,000 $1,010,000 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 $4,773,000 Sales (21,000 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 $1,277,000 217,000 75,000 315,000 210,500 240,000 2,334,500 2,438,500 Gross profit Selling expenses Packaging Shipping Sales salary (annual) 102,500 139,500 286,000 528,000 General and administrative expenses Advertising expense Salaries Entertainment expense 140,000 251,000 93,500 484,500 $1,426,000 Income from operations