Phoenix Company\'s 2013 master budget included the following fixed budget report

Question

Phoenix Company's 2013 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, 2013 3,150,000 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment Utilities ($30,000 is variable) $975,000 225,000 45,000 300,000 180,000 Plant management salaries 190,000 ,915,000 1,235,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 90,000 235,000 415,000 General and administrative expenses Advertising expense Salaries Entertainment expense 100,000 241,000 85,000 426,000 Income from operations $ 394,000

Explanation / Answer

Sales units            15,000            12,000 Contribution margin per unit            113.00            113.00 Contribution 16,95,000.00 13,56,000.00 Fixed cost 13,01,000.00 13,01,000.00 Net income    3,94,000.00       55,000.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---