Question

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 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 ($45,800 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 from operations $ 945,000 225,000 60,000 315,000 195,000 180,000 1.920, eee 1,680,000 25.000 105,000 235,000 415,000 150,000 230,000 80,000 $ 460,000 205,000

Answer 1

B C D E DH M UTUI DU ansswer 3 2 3 fixed budget for 15,000 units sales per unit cost 3000000 200 forecasted contribution margin sales in units) contribution margin per unit contribution margin. fixed costs operating income additional income 15000 18000 97.66667 97.66667 1465000 1758000 1260000 1260000 205000 498000 293000 4 direct materials 5 direct labor 6 machinery repairs 7 depreciation 8 utilities 9 utilities 10 plant and management salaries 11 packaging expenses 12 shipping 13 sales salary 14 advertising expense salaries 16 entertainment expense 945000 63 variable 225000 15 variable 60,000 4 variable 315000 fixed 45000 3 variable 150000 fixed 180000 fixed 75000 5 variable 105000 7 variable 235000 fixed 150000 fixed 230000 fixed 80000 5.333333 variable PHOENIX COMPANY FLEXIBLE BUDGET flexible budget flexible budget for variable amount total unit sales unit sales per unit fixed cost of 14000 of 16000 sales 200 2800000 3200000 variable costs direct materials 882000 1008000 direct labor 210000 240000 machinery repairs 56000 64000 utilities 42000 48000 packaging expenses 70000 80000 shipping 98000 112000 entertainment expense 5.333333 74666.67 85333.33 total variable cost 102.3333 1432667 1637333 fixed expenses depreciation 315000 315000 315000 utilities 150000 150000 150000 plant and management salaries 180000 180000 180000 sales salary 235000 235000 235000 advertising expense 150000 150000 150000 salaries 230000 230000 230000 12600 16000 16000 answer 4 15 sales in units) contribution margin per unit contribution margin. fixed costs operating income 15000 12000 97.66667 97.66667 1465000 1172000 1260000 1260000 205000 -88000 loss of $88000 would occur if it falls to 12000 units 18 advertising expense is considered fixed here, though it can be 19 fixed or variable also 20 21 total fredact