Phoenix Companys 2019 master budget included the following fixed budget report. It is based on...
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Accounting
Phoenix Companys 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.
The companys business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $394,000 if this level is reached without increasing capacity?
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