M Chapter 21 .co The following information applies to the questions displayed be

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M Chapter 21 .co The following information applies to the questions displayed besow Phoenix Company's 2015 master budget included the folilowing fixed budget report It is based on an expected productiqn and sales volume of 15 000 units. PHOENIX COMPANY Fioxed Budget Report Ended December 31,2 3,300,000 Cost of goods sold S 930.000 Direct materials Direct lsbor Machinery repairs (variable cost Depreciation-plant equipment (straight-äne) 315,000 Utlines (845.000 IS variable) Plant management salaries 225.000 45,000 210.000 190,000 1915,000 Gross profe Seling expenses 1,385,000 90,000 90.000 235,000 415000 Packaging Sales salary (fxed annual amount) General and administrative expenses 150,000 241000 Advertising expense Entertainment expense 80,000 471000 Income t rom operations s499000 15· 0.75 points Required: 182.Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classity all Type here to search

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PHOENIX COMPANY Budget Report For Year Ended December 31, 2015 No. of units 15000 Flexible Budget Flexible Budget Variable cost Fixed cost Unit sales 14000 Unit sales 16000   Sales (3300000/15000) 220 3080000 3520000   Cost of goods sold      Direct materials (930000/15000) 62 868000 992000      Direct labor 15 210000 240000      Machinery repairs (variable cost) (45000/15000) 3 42000 48000      Utilities ($45,000 is variable) 3 42000 48000 Packaging (90000/15000) 6 84000 96000 Shipping 6 84000 96000 Total variable cost 95 1330000 1520000 Contribution Margin 125 1750000 2000000 Fixed expenses      Depreciation—plant equipment (straight-line) 315000 315000 315000      Utilities ($45,000 is variable) 165000 165000 165000      Plant management salaries 190000 190000 190000      Sales salary (fixed annual amount) 235000 235000 235000      Advertising expense 150000 150000 150000      Salaries 241000 241000 241000      Entertainment expense 80000 80000 80000 Total fixed expenses 1376000 1376000 1376000   Income from operations 374000 624000

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