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.

PHOENIX COMPANY
Flexible Budgets
For Year Ended December 31, 2013
	Flexible Budget		Flexible Budget for:
	Variable Amount per Unit	Total Fixed Cost	Units Sales of 14,000	Unit Sales of 16,000
Sales
Variable costs
Direct materials
Direct labor
Machinery repairs
Utilities
Packaging
Shipping
Total variable costs
Contribution margin
Fixed costs
Advertising
Sales salary
Entertainment expense
Depreciation