Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,600,000 Cost of goods sold, Direct materials Direct labor Machinery repairs (variable cost) $800,000 240,000 32,000 Depreciation-Plant equipment (straight-line) Utilities ($16,000 in variable) Plant management salaries Gross profit 315,000 176,000 200,000 1,763,000 1,837,000 Selling expenses Packaging 48,000 Shipping 00,000 Sales salary (fixed annual amount) 250,000 378,000 General and administrative expenses Advertising expense 126,000 Salaries 251,000 Entertainment expense Income from operations 90,000 467,000 $ 992,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) $4,353,000 Cost of goods sold Direct materials $966,000 Direct labor 293,000 Machinery repairs (variable cost) 30,000 Depreciation-Plant equipment (straight-line). 315,000 Utilities (fixed cost is $158,000) 176,250 Plant management salaries 209,000 1,989,250 Gross profit 2,363,750 Selling expenses Packaging 54,750 Shipping 88,000 Sales salary (annual) 267,000 409,750 General and administrative expenses Advertising expense 134,000 Salaries 251,000 Entertainment expense 93,500 Income from operations 478,500 $1,475,500 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 I Fav. / Unfav. Fixed costs 0 0