1. Classify all items listed in the fixed budget as variable or fixed. For variable costs, determine their amounts per unit. For fixed costs, determine their amounts for the year. 2. Prepare flexible budgets (see Exhibit 21.3) at sales volumes of 18,000 and 24,000 units. Check (2) Budgeted income at 24,000 units, $372,400 3. The company's business conditions are improving. One possible result is a sales volume of 28,000 units. Prepare a simple budgeted income statement (as in Exhibit 21.1) if 28,000 units are sold