Please answer the question clearly.

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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,375,000 Cost of goods sold Direct materials $825,000 Direct labor 300,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($30,000 is variable) 180,000 Plant management salaries 200, eee 1,850,000 Gross profit 1,525,000 Selling expenses Packaging 60,000 Shipping 90,080 Sales salary (fixed annual amount) 270,000 420,000 General and administrative expenses Advertising expense 131,000 Salaries 261,000 Entertainment expense 100,000 492,000 Income from operations $ 613,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) $4, 128,000 Cost of goods sold Direct materials $1,086,800 Direct labor 368,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is $147,500) 182,750 Plant management salaries 210,000 2,111,750 Gross profit 2,016, 250 Selling expenses Packaging 69,500 Shipping 100,000 Sales salary (annual) 287,000 456,500 General and administrative expenses Advertising expense 138,000 Salaries 261,000 Entertainment expense 103,500 502,500 Income from operations $1,057,250 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 Fav. / Unfav. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping 0 0 Total variable costs Contribution margin Fixed costs Depreciation Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense Total fixed costs 0 0 Income from operations