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### Fixed Budget Report #### For Year Ended December 31, 2019 --- #### Sales - **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 **Total Cost of Goods Sold**: $1,955,000 **Gross Profit**: $1,045,000 #### Selling Expenses - **Packaging**: $75,000 - **Shipping**: $105,000 - **Sales salary (fixed annual amount)**: $250,000 **Total Selling Expenses**: $430,000 #### General and Administrative Expenses - **Advertising expense**: $125,000 - **Salaries**: $241,000 - **Entertainment expense**: $90,000 **Total General and Administrative Expenses**: $456,000 --- **Income from Operations**: $159,000

### Fixed Budget Report #### For Year Ended December 31, 2019 --- #### Sales - **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 **Total Cost of Goods Sold**: $1,955,000 **Gross Profit**: $1,045,000 #### Selling Expenses - **Packaging**: $75,000 - **Shipping**: $105,000 - **Sales salary (fixed annual amount)**: $250,000 **Total Selling Expenses**: $430,000 #### General and Administrative Expenses - **Advertising expense**: $125,000 - **Salaries**: $241,000 - **Entertainment expense**: $90,000 **Total General and Administrative Expenses**: $456,000 --- **Income from Operations**: $159,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.

  • Find the breakeven point and provide the income statement at break even 
  • Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000

 

### Fixed Budget Report #### For Year Ended December 31, 2019 --- #### Sales - **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 **Total Cost of Goods Sold**: $1,955,000 **Gross Profit**: $1,045,000 #### Selling Expenses - **Packaging**: $75,000 - **Shipping**: $105,000 - **Sales salary (fixed annual amount)**: $250,000 **Total Selling Expenses**: $430,000 #### General and Administrative Expenses - **Advertising expense**: $125,000 - **Salaries**: $241,000 - **Entertainment expense**: $90,000 **Total General and Administrative Expenses**: $456,000 --- **Income from Operations**: $159,000
Transcribed Image Text:### Fixed Budget Report #### For Year Ended December 31, 2019 --- #### Sales - **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 **Total Cost of Goods Sold**: $1,955,000 **Gross Profit**: $1,045,000 #### Selling Expenses - **Packaging**: $75,000 - **Shipping**: $105,000 - **Sales salary (fixed annual amount)**: $250,000 **Total Selling Expenses**: $430,000 #### General and Administrative Expenses - **Advertising expense**: $125,000 - **Salaries**: $241,000 - **Entertainment expense**: $90,000 **Total General and Administrative Expenses**: $456,000 --- **Income from Operations**: $159,000
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