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 $1,040,000 Direct labor 240,000 Machinery repairs (variable cost) 48,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($32,000 is variable) 192,000 Plant management salaries 230,000 2,080,000 Gross profit 1,520,000 Selling expenses Packaging 64,000 Shipping 96,000 Sales salary (fixed annual amount) 270,000 430,000 General and administrative expenses Advertising expense 130,000 Salaries 241,000 Entertainment expense 100,000 471,000 Income from operations $ 619,000 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, 323,000 Cost of goods sold Direct materials $1,251,000 Direct labor 293,000 Machinery repairs (variable cost) 48,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities (fixed cost is $157,500) 195,000 Plant management salaries 241,000 2,358,000 Gross profit 1,965,000 POVO 73,250 106,500 288,000 467,750 GEOSS PEOLE Selling expenses Packaging Shipping Sales salary (annual) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 138,000 241,000 103,500 482,500 $1,014,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances S 4,323.000 Fav./Unfav. Sales Variable costs 0 0 Fixed costs 0