Phoenix Companys 2017 master budget included the following f

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

Solution

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