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 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,300,000 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 $960,000 225,000 60,000 315,000 180,000 180,000 1, 920,000 1,380,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 90,000 235,000 415,000 General and administrative expenses Advertising expense Salaries Entertainment expense 125,000 241,000 80,000 446,000 $519,000 Income from operations