Phoenix Company\'s 2017 master budget included the following fixed budget report

Question

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 Sales Cost of goods sold $3,150,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-1ine) Utilities ($60,000 is variable) Plant management salaries $945,000 225,000 60,000 330,000 195,000 220,000 1,975,000 1,175,000 Gross profit Selling expenses . Packaging Shipping 90,000 90,000 235,000 . Sales salary (fixed annual amount) General and administrative expenses 415,000 Advertising expense Salaries 125,000 241,000 75,000 441,000 s319,000 Entertainment expense Income from operations

Explanation / Answer

flexible budget report of phoenix company LTD for the year ended Dec 31st-2017

   flexible budget

variable

cost per unit

unit sales

14000

$

unit sales

16000

$

note:

particulars

variable

cost per unit

total fixed cost

unit sales

14000

$

unit sales

16000

$

sales @210/unit 2940000 3360000 cost of goods sold direct material 945000/15000 63 882000 1008000 direct labour 225000/15000 15 210000 240000 machine repaires 60000/15000 4 56000 64000 utilities 60000/15000 4 135000 54000+135000 64000+135000 depreciation 330000 330000 330000 plant management salaries 220000 220000 220000 selling expenses packing 90000/15000 6 84000 96000 shipping 90000/15000 6 84000 96000 sales salaries 235000 235000 235000 gen.administrative exp advertising exp 125000 125000 125000 salaries 241000 241000 241000 entertainment 75000/15000 5 70000 80000 income from operations 214000 426000

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