Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1 [The following information applies to the questions displayed below.] 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 $3,150,000 Cost of goods sold. Direct materials $900,000 Direct labor 240,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 190,000 1,885,000 Gross profit 1,265,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 00,000 General and administrative expenses: Advertising expense 100,000 Salaries 230,000 Entertainment expense: Income from operations 80,000 410,000 $ 455,000