Required information [The following information applies to the questions displayed below.) 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 $3,150,000 Cost of goods sold Direct materials $930,000 Direct labor 225,000 Machinery repairs (variable 45,000 cost) Depreciation-Plant equipment (straight-line) 315,000 Utilities ($60,000 is 195,000 variable) Plant management salaries 210,000 1,920,000 Gross profit 1,230,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual 235,000 400,000 amount) General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 90,000 456,000 Income from operations $ 374,000 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 2017 could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (in units) 15,000 12,000 Contribution margin (per unit) Contribution margin Fixed costs Operating income (loss)