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 $3,825,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($34, eee is variable) Plant Management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $1,105, eee 340, Bee 51, see 330,000 184,000 215,00 2,225, eee 1,628,888 68, eee 102,000 250,000 420, cee 132, eee 251,800 110,000 493,000 $ 687, eee Phoenix Company's actual income statement for 2019 follows. $4,563,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (20,eee units) Cost of goods sold Direct materials $1,317, eee Direct labor 408,000 Machinery repairs (variable cost) 52,000 Depreciation-Plant equipment (straight-line) 33 , Utilities (fixed cost is $147,000) 186,000 Plant management salaries 225,000 Gross profit Selling expenses Packaging 77,500 Shipping 112,500 Sales salary (annual) 268,000 General and administrative expenses Advertising expense 140,000 Salaries Entertainment expense 251, een 114,000 Income from operations 2,518,000 2,845,000 458,000 505,000 $1,682,000 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Favorable Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Unfavorable Unfavorable Favorable Favorable Favorable Favorable 0 0 Total variable costs Contribution margin Fixed costs Depreciation--Plant equipment (straight-line) No variance Packaging Shipping Favorable Favorable 0 0 Total variable costs Contribution margin Fixed costs Depreciation --Plant equipment (straight-line) Plant management salaries Sales salary Advertising expense Salaries Entertainment expense Utilities No variance Unfavorable Unfavorable Unfavorable No variance Unfavorable Favorable Total fixed costs 0 0 Income from operations Unfavorable Favorable