Solution
PHOENIX COMPANY | ||||
Forecasted Contribution margin Income Statement | ||||
For the year ended December 31, 2017 | ||||
Sales(in units) | 15000 | 12000 | ||
Contribution margin per unit | $ 111.00 | $ 111.00 | ||
Contribution margin | $ 1,665,000.00 | $ 1,332,000.00 | ||
Fixed cost | $ 1,356,000.00 | $ 1,356,000.00 | ||
Operating income | $ 309,000.00 | $ (24,000.00) |
Working
PHOENIX COMPANY | |||||
Flexible Budget report | |||||
For year ended December 31, 2017 | |||||
Flexibla budget | Flexible budget for | ||||
variable Amount per Unit | Total Fixed cost | 15000 units | 12000 units | ||
Sales | $ 210 | $ 3,150,000 | $ 2,520,000 | ||
Variable costs | |||||
Direct material | $ 65 | $ 975,000 | $ 780,000 | ||
Direct Labor | $ 15 | $ 225,000 | $ 180,000 | ||
Machinery repairs | $ 3 | $ 45,000 | $ 36,000 | ||
Utilities | $ 4 | $ 60,000 | $ 48,000 | ||
Packaging | $ 6 | $ 90,000 | $ 72,000 | ||
Shipping | $ 6 | $ 90,000 | $ 72,000 | ||
Total Variable Coists | $ 99 | $ 1,485,000 | $ 1,188,000 | ||
Contribution margin | $ 111 | $ 1,665,000 | $ 1,332,000 | ||
Fixed costs | |||||
Depreciation- Plant equipment | $ 315,000 | $ 315,000 | $ 315,000 | ||
Utilities | $ 150,000 | $ 150,000 | $ 150,000 | ||
Plant management salaries | $ 200,000 | $ 200,000 | $ 200,000 | ||
Sales salaries | $ 235,000 | $ 235,000 | $ 235,000 | ||
Advertising expenses | $ 125,000 | $ 125,000 | $ 125,000 | ||
Salaries | $ 241,000 | $ 241,000 | $ 241,000 | ||
Entertainment expenses | $ 90,000 | $ 90,000 | $ 90,000 | ||
Total Fixed costs | $ 1,356,000 | $ 1,356,000 | $ 1,356,000 | ||
Income from Operations | $ 309,000 | -$ 24,000 |
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. 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...
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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,150,000 Sales Cost of goods sold Direct materials $960,000 225,000 45,000 300,000 195,000 180,000 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 expenses...
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 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. $3,150,000 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 2015 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 unt PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 Sales Cost of goods sold Direct materials $ 945,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation-plant equipment (straight-line) 330,000 Utilities ($60,000 is variable) 180,000 Plant management salaries 190,000 Gross profit Selling expenses Packaging 75,000 Shipping 105,000 Sales salary fixed annual...
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. РHOENIX OСOMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,300,000 Sales Cost of goods sold Direct materials $915,000 225,000 60,000 330,000 195,000 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 expenses Advertising...
Phoenix Company’s 2015 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, 2015 Sales: $3,000,000 Cost of goods sold Direct materials: $975,000 Direct labor: $240,000 Machinery repairs (variable cost): $45,000 Depreciation—plant equipment (straight-line): $315,000 Utilities ($60,000 is...
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 $ 900,000 Direct labor 210,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 190,000 1,855,000 Gross profit 1,295,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed...