/ Saved Help Save [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 (530,000 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 $ 960,000 210,000 60,000 330,000 195,000 200,000 1.955.000 1,345,000 75,000 99,000 235.000 400,000 125,000 241,000 35.000 451,000 494,000 3. The company's business conditions are improving One possible result is a sales volume of 18,000 units. The company president Pray Next work (Chapter 22 & 23) Saved Help Save 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 $494,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15.000 18.000 Contribution margin (per unit) Contribution margin Fixed costs Operating income mework (Chapter 22 & 23) F/activity/ Saved Help Save & Ede Check [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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold 53,300,000 Direct materials $ 960,000 Direct labor 210,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 330,000 utilities ($30,000 is variable) 195,000 Plant management salaries 200.000 1,955,000 Gross profit 1,345,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary fixed annual amount) 225.000 400.000 General and administrative expenses Advertising expense 125,000 Salaries 41,000 Entertainment expense 85.000 451.000 Income from operations 4. An unfavorable change in business is remotely possible in this case, production and sales volume for the year could fail to 12.000 2253A%252F%252Fnewconnect education.com 2525 activitu Week 4 Homework (Chapter 22 & 23) Saved Help Save & 9 Chi Part 3 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for the year could foll 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) 5 points - PHOENIX COMPANY Forecasted Contribution Margin income Statement For Year Ended December 31, 2019 Sales (in units) 15.000 12,000 Contribution margin (per unit) Contribution margin Fixed costs Operating income (los) Week 4 Homework (Chapter 22 & 23) Saved He 10 6 points Book Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (20,000 units) $5,048,000 Cost of goods sold Direct materials $1,315,000 Direct labor 409,000 Machinery repairs (variable cost) 71,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is $147,000) 206,250 Plant management salaries 211.000 2,512,250 Gross profit 2,535,750 Selling expenses Packaging 97,750 Shipping 132,500 Sales salary (annual) 286,000 516,250 General and administrative expenses Advertising expense 140,000 Salaries 251,000 Entertainment expense 103,500 494,500 Income from operations $1.525,000 Print References Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by telecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Week 4 Homework (Chapter 22 & 23) ewconnect.meducation.com 52/activity Saved Help Save GEN 10 Check Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 6 points PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fax / Untov, co Variable costs Fuced costs
