Problem 23-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 Phoenlx Company's 2017 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 16,000 unlits. PHOENIX COMPANY Fixed Budget Report For Year Ended Decesber 31, 2817 $3,28e,88e Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation- utilities ($48,800 is variable) Plant management salaries 5 880,8ee 168,880 64,eee 315,88e 288,808 Plant equipment (straight-line) 23e,ee0 1,857,886 1,343,8ee Gross profit Selling expenses Packaging Shipping Sales salary (ixed annual anount) 112,e08 452,88e General and administrative expenses Advertising expense Salaries Entertainment expense 127,000 241,888 ge,eee 458,006e $ 433,eee Income from operations Phoenlx Company's actual Income statement for 2017 follows. PHOENIX COMP Statement of Income from Operations For Year Ended December 31, 2817 $3,863,eee Sales (19,e8e units) Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (fixed cost is $157,5e3) Plant management salaries $1,061,eee 198,88e 67,888 315,eee 213,75e 24e,ee0 2,894,75e 1,768,25e Gross profit Selling expenses Packaging Shipping Sales salary (annual) 93,80e 125,5ee 278,eee 496, see General and administrative expenses Advertising expense Salaries Entertainment expense 136,8e0 241,ee 93,588 470,58e $ 801,25e Income from operations