Required Information [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. 53, eee, eee PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 975,000 225,000 45,000 330,000 210,000 21 , 1,995,000 1 1,005,000 98,eee 105,000 235,000 430,000 125,000 24 241,000 80,000 446,000 129,000 $ 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 budgeted amount of $129.000 if this level is reached without increasing capacity? Answer is not complete. PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 15,000 18,000 Sales (in units) Contribution margin (per unit) Contribution margin Fixed costs Operating income Operating income increase