Solution:
Phoenix Company | ||||
Flexible Budget for 2017 | ||||
Particulars | Flexible Budget | Flexible Budget For | ||
Variable amount per unit | Total Fixed Cost | Volume - 14000 units | Volume - 16000 units | |
Sales | $220.00 | $3,080,000.00 | $3,520,000.00 | |
Variable costs: | ||||
Direct materials | $61.00 | $854,000.00 | $976,000.00 | |
Direct labor | $15.00 | $210,000.00 | $240,000.00 | |
Machinery repairs | $4.00 | $56,000.00 | $64,000.00 | |
Utilities | $3.00 | $42,000.00 | $48,000.00 | |
Packaging | $6.00 | $84,000.00 | $96,000.00 | |
Shipping | $6.00 | $84,000.00 | $96,000.00 | |
Total Variable costs | $95.00 | $1,330,000.00 | $1,520,000.00 | |
Contribution margin | $125.00 | $1,750,000.00 | $2,000,000.00 | |
Fixed Costs: | ||||
Depreciation—Plant equipment | $330,000.00 | $330,000.00 | $330,000.00 | |
Utilities | $150,000.00 | $150,000.00 | $150,000.00 | |
Plant management salaries | $210,000.00 | $210,000.00 | $210,000.00 | |
Sales Salaries | $235,000.00 | $235,000.00 | $235,000.00 | |
Advertising expense | $125,000.00 | $125,000.00 | $125,000.00 | |
Salaries | $241,000.00 | $241,000.00 | $241,000.00 | |
Entertainment expense | $80,000.00 | $80,000.00 | $80,000.00 | |
Total Fixed Costs | $1,371,000.00 | $1,371,000.00 | $1,371,000.00 | |
Net Operating Income | $379,000.00 | $629,000.00 |
Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an...
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. $3,300,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $915,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 210,000 Gross profit Selling expenses Packaging 90,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 General...
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. $3,150,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $960,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 180,000 Gross profit Selling expenses Packaging 90,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 General...
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. $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($30,880 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income...
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. Required information Problem 21-1A Preparation and analysis of a flexible budget LO P1 (The following information applies to the questions displayed below.) 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. $3,300,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December...
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. $3,300,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $930,000 Direct labor 210,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($30,000 is variable) 195,000 Plant management malaries 180,000 Gross profit Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 General...
Chap 21 Homework 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 $3,300,000 Part 1 of 3 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment straight-line) Utilities (530,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative...
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 $ 3,150,000 Cost of goods sold Direct materials $ 915,000 Direct labor 210,000 Machinery repairs (variable cost) 45,000 Depreciation—Plant equipment (straight-line) 330,000 Utilities ($60,000 is variable) 195,000 Plant management salaries 200,000 1,895,000 Gross profit 1,255,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed...
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 $ 3,000,000 Cost of goods sold Direct materials $ 915,000 Direct labor 210,000 Machinery repairs (variable cost) 45,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($60,000 is variable) 180,000 Plant management salaries 190,000 1,840,000 Gross profit 1,160,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed...
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 $ 3,000,000 Cost of goods sold Direct materials $ 945,000 Direct labor 240,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($30,000 is variable) 195,000 Plant management salaries 220,000 1,975,000 Gross profit 1,025,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed...
Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17.000 units. $4,250,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $1,020,000 Direct labor 255,000 Machinery repairs (variable cost) 68,000 Depreciation-Plant equipment (straight- 300,000 line) Utilities ($51,000 is variable) 201,000 Plant management salaries 230,000 Gross profit Selling expenses Packaging 85,000 Shipping 119,000 Sales salary (fixed annual amount) 270,000...