Problem 23-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2017 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, 2017 Sales Cost of goods sold $3,375,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries $ 750,000 225,000 75,000 315,000 210,000 200,000 1,775,000 1,600,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 120,000 260,000 470,000 General and administrative expenses Advertising expense Salaries Entertainment expense 133,000 241,000 100,000 474,988 Income from operations $ 656,000