Por Year Ended December 31, 2017 $3,300,000 Sales Cost of goods sold $945,000 210,000 60,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line)315,000 Utilities ($30,000 is variable) Plant management salaries 210,000 190,000 1.930,000 1,370,000 Gross profit Selling expenses Packaging shipping Sales salary (fixed annual amount) 75,000 90,000 235,000 400,000 General and administrative expenses Advertising expense Salaries 125, 000 241, 000 80,000 Entertainnent expense 446,000 Income from operations 524,000 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the 2017 budgeted amount of $524,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (in units) Contribution margin (per unit) Contribution margin Fixed costs Operating income 15,000 18,000 K Prex2 3 of 4