Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an...

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Phoenix Company's 2019 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 Tor Year Koded Decenber 31. 2019 Sales $3,300,000 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipnent (atraight-line) Utilities (630,000 is variable) Plant managenent salaries Gross profit Selling expenses Packaging hipping Sales salary (tixed annual anount) Ceneral and adninistrative expenses Advertising expenae Salariea Entertainnent expense Income trom operations $930,000 210,000 45,000 315,000 195,000 210,000 1,05,000 1,395,000 90,000 90,000 235,000 415,000 125,000 241,000 75,000 441,000 539,000 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $539,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15,000 18,000 Contribution margin (per unit) Contribution margin Fxed costs Operating income 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for the year could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15,000 12,000 Contribution margin (per unit) Contribution margin Fixed costs Operating income (loss) Phoenix Company's 2019 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 Tor Year Koded Decenber 31. 2019 Sales $3,300,000 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipnent (atraight-line) Utilities (630,000 is variable) Plant managenent salaries Gross profit Selling expenses Packaging hipping Sales salary (tixed annual anount) Ceneral and adninistrative expenses Advertising expenae Salariea Entertainnent expense Income trom operations $930,000 210,000 45,000 315,000 195,000 210,000 1,05,000 1,395,000 90,000 90,000 235,000 415,000 125,000 241,000 75,000 441,000 539,000 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $539,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15,000 18,000 Contribution margin (per unit) Contribution margin Fxed costs Operating income 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for the year could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (in units) 15,000 12,000 Contribution margin (per unit) Contribution margin Fixed costs Operating income (loss)

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