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. $3,600, dd 17:27 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $880,000 Direct labor 240,000 Machinery repairs (variable cost) 48,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($32,000 is variable) 182,000 Plant management salaries 215,080 Gross profit Selling expenses Packaging Shipping 96,000 Sales salary (fixed annual amount) 250.000 General and administrative expenses Advertising expense 135,000 Salaries 241,000 Entertainment expense 90,000 Income from operations 1,880,000 1,720,800 410,000 466,000 844,000 $ Phoenix Company's actual income statement for 2017 follows. $4,323,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (19,880 units) Cost of goods sold Direct materials $1,062,000 Direct labor 293,000 Machinery repairs (variable cost) 48,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $147,500) 185,000 Plant management salaries 225,000 Gross profit Sellina expenses 2,128,888 2,195,000