assistance would be greatly appreciated. Required information /The following inf

Question

assistance would be greatly appreciated.

Required information /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, 2817 Sales Cost of goods sold $3, 300,0ee Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight- line) Utilities ($45,800 is variable) Plant management salaries $938,000 248,8868 45,808 336,808 195,900 190,800 1,93,00 1,376,0ee Gross profit selling expenses Packaging Shipping sales salary (fixed annual amount)235,890 96,800 90,000 415,800 General and administrative expenses Advertising expense Salaries Entertainment expense 150,880 2 , ??? 85,880 465,8e 490,008 Income from operations

Explanation / Answer

Answer 1 & 2. PHOENIX COMPANY Fixed Budget Report For Year Ended Dec 31, 2017 Flexible Budget Flexible Budget For Variable Amt. Per Unit Total Fixed Cost Unit Sales of 14,000 Unit Sales of 16,000 Sales                220.00    3,080,000.00    3,520,000.00 Variable Cost: Direct Materials                  62.00        868,000.00        992,000.00 Direct Labor                  16.00        224,000.00        256,000.00 Machinery Repairs                     3.00          42,000.00          48,000.00 Utilities                     3.00          42,000.00          48,000.00 Packaging                     6.00          84,000.00          96,000.00 Shipping                     6.00          84,000.00          96,000.00 Total Variable Cost                  96.00    1,344,000.00    1,536,000.00 Contribution                124.00    1,736,000.00    1,984,000.00 Fixed Cost Depreciation - Plant Equipment        330,000.00        330,000.00        330,000.00 Utilities        150,000.00        150,000.00        150,000.00 Plant Management Salaries        190,000.00        190,000.00        190,000.00 Sales Salary        235,000.00        235,000.00        235,000.00 Advertising Expense        150,000.00        150,000.00        150,000.00 Salaries        230,000.00        230,000.00        230,000.00 Entertainment Expense          85,000.00          85,000.00          85,000.00 Total Fixed Cost    1,370,000.00    1,370,000.00    1,370,000.00 Income From Operations        366,000.00        614,000.00 Answer 3. PHOENIX COMPANY Forecasted Contribution Margin Income Statement For the Year Ended Dec 31, 2017 Units Sold 15,000 Units Sold 18,000 Diference Sales In Units          15,000.00          18,000.00 Contribution Margin (Per Unit)                124.00                124.00 Contribution Margin    1,860,000.00    2,232,000.00 Fixed Cost    1,370,000.00    1,370,000.00 Operating Income        490,000.00        862,000.00        372,000.00 (Expected Inc. (Dec.) in Operating Income) Answer 4. PHOENIX COMPANY Forecasted Contribution Margin Income Statement For the Year Ended Dec 31, 2017 Units Sold 15,000 Units Sold 12,000 Diference Sales In Units          15,000.00          12,000.00 Contribution Margin (Per Unit)                124.00                124.00 Contribution Margin    1,860,000.00    1,488,000.00 Fixed Cost    1,370,000.00    1,370,000.00 Operating Income (Loss)        490,000.00        118,000.00     (372,000.00) (Expected Inc. (Dec.) in Operating Income)

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