Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $4,250,000 Cost of goods sold Direct materials $935,000 Direct labor 255,000 Machinery repairs (variable cost) 85,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($68,000 is variable) 228,000 Plant management salaries 200,000 2,003,000 Gross profit 2,247,000 Selling expenses Packaging 102,000 Shipping 136,000 Sales salary (fixed annual amount) 260,000 498,000 General and administrative expenses. Advertising expense 129,000 Salaries 251,000 Entertainment expense Income from operations 110,000 490,000 $1,259,000