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. $3,000,000 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 ($45,000 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 60,000 300,000 195,000 200,000 1,955,000 1,045,000 75,000 105,000 250,000 430,000 125,000 241,000 90,000 456,000 159,000 $ 4. An unfavorable change in business is remotely possible in this case, production and sales volume for the year could fall to 12,000 units. How much income for loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) Answer is complete but not entirely correct. PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15.000 12.000 Contribution margin (per $ 105.00 $ unit) 105.00 Contribution margin $ 1,575.000 $ 1.260.000 Fixed costs (1,345,000)|(1,345,000) Operating income loss) $ 230,000 $ (85,000)