Phoenix Company's 20 master budget included the following fixed budget report. It is based on an expected proal 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 $975,000 225,000 60,000 300,000 195,000 200,000 1,955,000 1,045,000 75,000 105,000 250,000 $3,000,000 125,000 241,000 90,000 $ 430,000 456,000 159,000
Phoenix Company's 20 master budget included the following fixed budget report. It is based on an expected proal 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 $975,000 225,000 60,000 300,000 195,000 200,000 1,955,000 1,045,000 75,000 105,000 250,000 $3,000,000 125,000 241,000 90,000 $ 430,000 456,000 159,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Variable costs
Fixed costs
PHOENIX COMPANY
Flexible Budgets
For Year Ended December 31, 2019
Flexible Budget
Variable Amount Total Fixed
per Unit
Cost
Flexible Budget for:
Units Sales
of 14,000
Unit Sales
of 16,000
![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
$975,000
225,000
60,000
300,000
195,000
200,000 1,955,000
1,045,000
75,000
105,000
250,000
$3,000,000
125,000
241,000
90,000
430,000
456,000
$ 159,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2ed5e6c-0d63-4e2f-81c7-ef354af209b5%2F13b60dd1-eb3d-4509-a81b-cd39abd5f4f4%2F60sybzl_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
$975,000
225,000
60,000
300,000
195,000
200,000 1,955,000
1,045,000
75,000
105,000
250,000
$3,000,000
125,000
241,000
90,000
430,000
456,000
$ 159,000
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