[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 $ 960.000 Direct labor 200.000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment straight-line) 300,000 Utilities ($60,000 is variable) 195,000 Plant management salaries 210.000 1920.000 Gross profit 1230000 Selling expenses Packaging 75.000 Shipping Sales salary forced annual amount) 235,000 485.000 General and administrative expenses Advertising expense 100.000 Salaries 230,000 Entertainment expense 30.000 410.000 Income from operations $405.000 105.000 2. Award: 33.33 points 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 2017 budgeted amount of $405,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sale in units 15.000 18.000 Contribution margin (per unit) Contribution margin Fixed costs Operating income