1) Using the budget in P23-1A, determine which items are fixed and which are variable. For the variable items, compute the budgeted amount per item using the 15,000 unit sales volume. For each item, ask yourself if I make or sell more units, do I need more of this resource? Remember that the number of units drives the cost - not the other way around.

x X C Canvas Launchpad - Thomas Discussion 3: The Five Dysfun: x Phoenix Company's m/homework-help/Fundamental-Accounting-Principles-23rd-edition-chapter-23-problem-1PA-soluti negg Study Textbook Solutions Expert Q&A Study Pack Practice MW Show all steps: W Bookmark Chapter 23, Problem 1PA ON PHOENIX COMPANY land Budget Report For Your Ended December 31, 2017 Sales. $3.000.000 $975.000 225.000 60.000 300.000 195.000 200.000 1955.000 1.045,000 Cost of goods sold Direct materials... Direct labor... Machinery repairs variable cost.. Depreciation Plant equipment straight-line U $45.000 is variable Plant management series ... Gross profit................. Selling expenses Packaging.. ***** Shipping Sales salary fixed a s mount) General and administrative expenses Advertising expenses Salaries...... ... .. Entertainment expense. Income from operations .... 75.000 105.000 250,000 430,000 125.000 241,000 456,000 $ 159.000 Required 1. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per unit or their amounts for the year, as appropriate. 2. Prepare flexible budgets (See Exhibit 23.3) for the company at sales volumes of 14,000 and 16.000 units