The oaettomheducation.com/hemtpo IThe following information applies to the quest
ID: 2550493 • Letter: T
Question
The oaettomheducation.com/hemtpo IThe following information applies to the questions displayed below/ Phonix Company's 2015 master budget ncluded the folowing fiwed budget report It s based on an expected production and sales volume of 15,000 units fixed budget report. It is based on an PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 3000000 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation--plant equipment (straight $945,000 225,000 45,000 330,000 180,000 line) Utilities ($45,000 is variable) Plant management salaries 190,000 1.915.000 Gross profit Selling expenses 1,085000 Packaging Shipping Sales salary (fixed annual amount) 90,000 105,000 235,000 430,000 General and administrative expenses Advertising expense 125,000 Type here to searchExplanation / Answer
Phoneix company Flexible Budgets For the year ended Dec 31 ,2015 Flexible Budget Flexible Budget For Variable Amount per unit Total Fixed Cost Unit Sales of 14000 Unit Sales of 16000 Sales (3000000/15000) 200 2800000 3200000 Variable Cost Direct Materials (945/15) 63 882000 1008000 Direct Labor 15 210000 240000 Machine Repairs 3 42000 48000 Utilities (45/15) 3 42000 48000 Packing 6 84000 96000 Shipping 7 98000 112000 Total Variable Costs 97 1358000 1552000 Contribution Margin 103 1442000 1648000 Fixed Costs Depriciation - Plant Equipment 330000 330000 330000 Utilites (180000-45000) 135000 135000 135000 Plant Management Salaries 190000 190000 190000 Sales Salaries 235000 235000 235000 Advertising 125000 125000 125000 Salaries 230000 230000 230000 Entertainment Expense 80000 80000 80000 Total Fixed Costs 1325000 1325000 1325000 Income From operations 117000 323000 Phonex Company Forcasted Contribution Margin Income Statement For Year Ended December 31 2015 Sales(In units) 15000 18000 Contribution margin (per ut) 103 103 Contribution Margin 1545000 1854000 Fixed Costs 1325000 1325000 Expected Increase in operating Income 220000 529000 309000 Operating Income Increase