Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold $3
ID: 2552723 • Letter: F
Question
Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold $3,300,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($30,000 is variable) Plant management salaries $945,000 210,000 60,000 315,000 210,000 190,000 1,930,000 ,370,000 Gross profit selling expenses Packaging Shipping Sales salary (fixed annual amount 75, 000 90,000 235,000400,000 General and adminintrative expenses Advertising expense Salaries Entertainment expense 125,000 241,000 80,000 446,000 $524,000 Income from operations 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) Contribution margin (per unit) Contribution margin Fixed costs Operating income (loss) 15,000 12,000Explanation / Answer
4. Phoenix Company
Forecasted Contribution Margin Income Statement
For the year ended December 31, 2017
Total Variable Costs ( 15,000 units) and Variable Cost per Unit :
Total Fixed Cost:
Sales ( in Units) 15,000 12,000 Contribution Margin ( per Unit) $ 126 $ 126 Contribution Margin $ 1,890,000 $ 1,512,000 Fixed Costs 1,366,000 1,366,000 Operating Income ( loss) $ 524,000 $ 146,000Related Questions
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