## Fixed Budget Report ### For Year Ended December 31, 2019 **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** ### Explanation of Financial Breakdown This report provides a detailed account of the company's fixed budget for the year ended December 31, 2019. It covers various aspects including sales, costs of goods sold, selling expenses, and general and administrative expenses, culminating in the income from operations. Key components include: - **Sales Revenue**: The total amount generated from sales was $3,000,000. - **Cost of Goods Sold (COGS)**: This includes all direct costs attributed to the production of the goods sold by the company, totaling $1,955,000. - **Gross Profit**: The profit which the company made after deducting the COGS from the sales revenue, amounting to $1,045,000. - **Selling Expenses**: Costs associated with the distribution and sale of the company's product, which total $430,000. - **General and Administrative Expenses**: Overhead and ongoing operational costs amounting to $456,000. - **Income from Operations**: The profit after all operating expenses are deducted from gross profit, resulting in $159,000. This structured financial data serves as an important tool for managing and planning the organization's budget, ensuring that resources are efficiently used, and identifying areas for potential cost savings or investment.