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PHOENIX COMPANY Fired Budget Report For Year Ended December 31. 2013 Sales 3,000,000 8 Cost of goods sold: 9 Direct materials 975,000 Direc abo 225,000 Machinery repairs (variable cost) 60,000 2 Depreciation-plant equipment 300,000 3 Utilities ($45,000 is variable) 95,000 4 Plant management salaries 200,000 955,000 5 Gross profit 045,000 Selling expenses: Packaging 75,000 Shipping 05.000 Sales salary (fixed annual amoun 250,000 430,000 20 General and administrative expenses: 21 Advertising expense 25,000 22 Salaries 241,000 23 Entertainment expense 90,000 456,000 4 Income from operations 59,000 26 Based on production and sales volume Units 5,000 PHOENIX COMPANY Statement of income from operations For Year Ended December 31. 2013 4 Sales (18,000 units 3,648,000 85 Cost of goods sold: 36 Direct materials 85,000 Direc abo 278,000 38 Machinery repairs (variable cost) 63,000 9 Depreciation Plant equipment 300,000 0 Utilities (fixed cost is $14 7.500) 200,500 41 Plant management salaries 210,000 2,236,500 42 Gross profit 411,500 Selling expenses: Packaging 87,500 Shipping 8,500 46 Sales salary (annual 268,000 474,000 47 General and administrative expenses: Adve 32,000 sing expense Salaries 241,000 50 Entertainment expense 93,500 466,500 51 Income from operations 471,000 53 Check figures: 54 (1) Variances 36,000 U Fixed costs 9,000 F

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