Required information Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1 The following information applies to the questions displayed below.) 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. $3,000,000 PHOENIX COMPANY Fixed Nudget Report For Your Ended December 31, 2019 Sales Coot of goods sold Direct materials $930.000 Direct labor 240,000 Machinery repairs (variable cont> 60,000 Depreciation Plant equipment (traight-line) 300,000 Utilities ($60,000 is variable 195,000 Plant management salaries 180,000 Cross profit Selling expenses Packaging 75.000 Shipping 105,000 Salon talary (fixed annual amount) 235,000 General and administrative expenses Advertising expenso 100,000 Salario 230,000 Intertainment oxpanse 00.000 Income from operations 1,905,000 1.095,000 415,000 410,000 $ 270,000 Problem 21-1A Part 3 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 $270,000 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 Fixed costs Operating income