Required informatio [The following information applies to the questions displaye

Question

Required informatio [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 $3,000,000 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 $945,000 210,000 60,000 315,000 210,000 200,000 1,940,000 1,060,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 75,000 90,000 235,000 400,000 General and administrative expenses Advertising expense Salaries Entertainment expense 100,000 241,000 85,000 426,000 $ 234,000 Income from operations

Explanation / Answer

Variable per unit Total Fixed Cost 14000 Units 16000 Units Sales 200 2800000 3200000 Variable Cost: Direct Material 63 882000 1008000 Labour 14 196000 224000 Machine Repair 4 56000 64000 Utilities 3 42000 48000 Packaging 5 70000 80000 Shipping 6 84000 96000 Fixed Cost: Utilities 165000 165000 165000 Plant mgmt salaries 200000 200000 200000 Depreciation 315000 315000 315000 Sales Salary 235000 235000 235000 Advertising 100000 100000 100000 Salaries 241000 241000 241000 Entertainment 85000 85000 85000 Net Profit 129000 339000

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