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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales. $3,000,000 Cost of goods sold Direct materials $975,000 Direct labor 300,000 Machinery repairs (variable cost) 75,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($60,000 is variable) 220,000 Plant management salaries 215,000 2,115,000 Gross profit 885,000 Selling expenses Packaging 90,000 Shipping 120,000 Sales salary (fixed annual amount) 270,000 480,000 General and administrative expenses Advertising expense 131,000 Salaries 241,000 Entertainment expense 90,000 462,000 Income from operations $ 57,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) $3,648,000 Cost of goods sold Direct materials $1,187,000 Direct labor 369,000 Machinery repairs (variable cost) 82,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities (fixed cost is $158,000) 229,250 Plant management salaries 225,000 2,422,250 Gross profit 1,225,750 Selling expenses Packaging 105,500 Shipping 136,500 Sales salary (annual) 287,000 529,000 General and administrative expenses Advertising expense 139,000 Salaries 241,000 Entertainment expense 93,000 473,000 Income from operations $ 223,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Sales Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav./ Unfav. 0 0 0 0