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. 2 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales cost of goods sold $3,150,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries $945,000 225,000 60,000 330,000 195,000 220,000 1,975,000 1,175,000 Gross profit Selling expenses 90,000 90,000 235,000 Packaging Shipping Sales salary (fixed annual amount) 415,000 General and administrative expenses 125,000 241,000 Advertising expense Salaries Entertainment expense 75,000 441,000 $319,000 Income from operations