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.

Requlred Information Problem 23-1A Preparation and analysis of a flexible budget LO P1 The following information applies to the questions displayed below.) Phoenix Company's 2017 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $ 3,880, eee PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,eee 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 $ 975,00 225, ese 60, eee see,ese 195, eee 2ee, eee 1,955, eee 1,845, eee 75,000 105,eee 250, eee 438,eee 125,000 241, eee 9e,eee 456,080 159, eee $ 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. Answer is not complete. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Variable Total Fixed Amount per Cost Unit Flexible Budget for: Units Unit Sales Sales of 14,000 of 16,000 S 2.800.000 $ 3,200,000 Sales Variable costs Direct materials 65.00 DI 910,000 210.000 56,000 >> 1,040,000 240,000 15.00 4.00 Direct labor Machinery repairs Utilities Packaging Shipping DIOIOIOIO 3.00 OOOOC 64,000 48,000 80,000 42.000 70,000 5.00 7.00 98,000 112,000 90.00 1,386,000 1,584,000 Total variable costs Contribution margin Faced costs Depreciation-Plant equipment (straight- line) Advertising expense Entertainment expense Plant management salaries Utilities Sales salary Salaries Total foxed costs S 0 S 0 IS 0 Income from operations