Required information [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. Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Utilities ($45,000 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 $ 960,000 225,000 45,000 315,000 180,000 200,000 75,000 90,000 235,000 125,000 230,000 85,000 $3,300,000 1,925,000 1,375,000 400,000 440,000 $ 535,000 Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.
Required information [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. Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Utilities ($45,000 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 $ 960,000 225,000 45,000 315,000 180,000 200,000 75,000 90,000 235,000 125,000 230,000 85,000 $3,300,000 1,925,000 1,375,000 400,000 440,000 $ 535,000 Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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![Required information
[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.
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
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2019
Packaging
Shipping
Sales salary (fixed annual amount)
General and administrative expenses
Advertising expense
Salaries
Entertainment expense
Income from operations
$ 960,000
225,000
45,000
315,000
180,000
200,000
75,000
90,000
235,000
125,000
230,000
85,000
$3,300,000
1,925,000
1,375,000
400,000
440,000
$ 535,000
Required:
1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed
budget as variable or fixed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F300d3302-c17e-4755-9b77-6c3cc5b3a680%2F96215a7b-980d-4e4f-8f1a-bafc713b5b04%2Fetsj2_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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.
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
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2019
Packaging
Shipping
Sales salary (fixed annual amount)
General and administrative expenses
Advertising expense
Salaries
Entertainment expense
Income from operations
$ 960,000
225,000
45,000
315,000
180,000
200,000
75,000
90,000
235,000
125,000
230,000
85,000
$3,300,000
1,925,000
1,375,000
400,000
440,000
$ 535,000
Required:
1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed
budget as variable or fixed.
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