Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,150,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials $915,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 Gross profit Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 125,000 Salaries 230,000 Entertainment expense 90,000 Income from operations 1,925,000 1,225,000 430,000 445,000 $ 350,000 PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 per Unit Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping 0.00 0 Total variable costs Contribution margin Fixed costs Machinery repairs Utilities Packaging Shipping 0.00 0 0 Total variable costs Contribution margin Fixed costs 0 $ $ 0