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 $3,300,000 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 (545,000 is variable) Plant management salaries Gross profit Selline expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $975,000 225,000 45,000 300,000 195,000 200,000 1,940,000 1,360,000 90,000 90,000 235,000 415,000 125,000 230,000 90,000 445.000 $ 500,000 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 $500,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Matuin income Statement For Year Ended December 31, 2010 Sales (in units) 15,000 18,000 Contribution margin (per unit) Contribution margin Fored costs Operating income