Solution 4:
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 | $200.00 | $2,800,000.00 | $3,200,000.00 | |
Variable costs: | ||||
Direct materials | $65.00 | $910,000.00 | $1,040,000.00 | |
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 | $5.00 | $70,000.00 | $80,000.00 | |
Shipping | $7.00 | $98,000.00 | $112,000.00 | |
Total Variable costs | $99.00 | $1,386,000.00 | $1,584,000.00 | |
Contribution margin | $101.00 | $1,414,000.00 | $1,616,000.00 | |
Fixed Costs: | ||||
Depreciation—Plant equipment | $300,000.00 | $300,000.00 | $300,000.00 | |
Utilities | $150,000.00 | $150,000.00 | $150,000.00 | |
Plant management salaries | $200,000.00 | $200,000.00 | $200,000.00 | |
Sales Salaries | $250,000.00 | $250,000.00 | $250,000.00 | |
Advertising expense | $125,000.00 | $125,000.00 | $125,000.00 | |
Salaries | $241,000.00 | $241,000.00 | $241,000.00 | |
Entertainment expense | $90,000.00 | $90,000.00 | $90,000.00 | |
Total Fixed Costs | $1,356,000.00 | $1,356,000.00 | $1,356,000.00 | |
Net Operating Income | $58,000.00 | $260,000.00 |
Phoenix Company | ||
Forecasted contribution margin income statement | ||
For the year ended December 31, 2017 | ||
Sales (In units) | 15000 | 12000 |
Contribution margin per unit | $101.00 | $101.00 |
Contribution margin | $1,515,000.00 | $1,212,000.00 |
Fixed costs | $1,356,000.00 | $1,356,000.00 |
Operating income (Loss) | $159,000.00 | -$144,000.00 |
Required information The following information applies to the questions displayed below.] Phoenix Company's 2017 master budget...
Required information (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. $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation,Plant equipment (straight-line) 300,000 Utilities ($ 45,000 is variable) 195,000 Plant management salaries 200,000 Gross profit Selling...
Required information [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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,000,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,955,000 Gross...
Required information [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. $3,000,000 $ 930,000 240,000 45,080 330,000 210, oee 180,eee 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- Utilities ($30,000 is variable) Plant management salaries Gross profit...
Required information 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 $3,150.000 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 (545,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual...
Required information [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. 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 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 220,000 1,930,000 Gross...
[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. 3.150.000 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 ($60,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary fixed annual amount) 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 $975,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($60,000 is variable) 210,000 Plant management salaries 200,000 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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,150,000 $960,000 225.000 45.000 300,000 195.000 180,000 1,905,000 1.225.000 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative...
Required information 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. $3,150,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $930,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Depreciation--Plant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 180,000 Plant management salaries 190,000 Gross profit Selling expenses...
Required information 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. ed December 31, 2017 $3,300,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 312017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales...