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 $945,000 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 180,000 Gross profit Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 150,000 Sala 230,000 Entertainment expense 85,000 Income from operations 1,935,000 1,215,000 400,000 465,000 350,000 $ PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Total Fixed Amount per Cost Unit Flexible Budget for: Units Unit Sales of Sales of 14,000 16,000 $ $ 2,940,000 3,360,000 Sales > $ 210.00 Variable costs Direct materials 63.00 882,000 15.00 210,000 4.00 56,000 Direct labor Machinery repairs Utilities Packaging Shipping OOOOOO 1,008,000 240,000 64,000 48,000 80,000 96,000 3.00 5.00 42,000 70,000 84,000 6.00 96.00 olo 1,344,000 1,536,000 1,596,000 1,824,000 $ 114.00 330,000 330,000 330,000 Total variable costs Contribution margin Fixed costs DepreciationPlant equipment (straight- line) Utilities Plant management salaries Sales salary Advertising expense Salaries 180,000 OOOOOOO 235,000 150,000 180,000 235,000 150,000 230,000 85,000 180,000 235,000 150,000 230,000 85,000 230,000 85,000 Entertainment expense Total fixed costs $ 1,210,000 $ $ 1,210,000 1,210,000 $ 386,000 8]$ 614,000 8 Income from operations 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 $945,000 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 180,000 Gross profit Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 150,000 Sala 230,000 Entertainment expense 85,000 Income from operations 1,935,000 1,215,000 400,000 465,000 350,000 $ PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Total Fixed Amount per Cost Unit Flexible Budget for: Units Unit Sales of Sales of 14,000 16,000 $ $ 2,940,000 3,360,000 Sales > $ 210.00 Variable costs Direct materials 63.00 882,000 15.00 210,000 4.00 56,000 Direct labor Machinery repairs Utilities Packaging Shipping OOOOOO 1,008,000 240,000 64,000 48,000 80,000 96,000 3.00 5.00 42,000 70,000 84,000 6.00 96.00 olo 1,344,000 1,536,000 1,596,000 1,824,000 $ 114.00 330,000 330,000 330,000 Total variable costs Contribution margin Fixed costs DepreciationPlant equipment (straight- line) Utilities Plant management salaries Sales salary Advertising expense Salaries 180,000 OOOOOOO 235,000 150,000 180,000 235,000 150,000 230,000 85,000 180,000 235,000 150,000 230,000 85,000 230,000 85,000 Entertainment expense Total fixed costs $ 1,210,000 $ $ 1,210,000 1,210,000 $ 386,000 8]$ 614,000 8 Income from operations
