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...





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$3,150,000
Cost of goods sold
Direct materials$915,000
Direct labor240,000
Machinery repairs (variable cost)45,000
Depreciation—Plant equipment (straight-line)315,000
Utilities ($60,000 is variable)210,000
Plant management salaries210,0001,935,000
Gross profit1,215,000
Selling expenses
Packaging75,000
Shipping90,000
Sales salary (fixed annual amount)235,000400,000
General and administrative expenses
Advertising expense125,000
Salaries230,000
Entertainment expense85,000440,000
Income from operations$375,000








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 $375,000 if this level is reached without increasing capacity?









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Extracted text: Checke Required information confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $375,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Staterment For Year Ended December 31, 2019 Sales (in units) 15,000 18,000 Contribution margin (per unit) Contribution margin Fixed costs Operating income of 8 Next > 3. < prev 719 1/271 e to search prev="" 719="" 1/271="" e="" to="">
Jun 10, 2022
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