ASAP. Phoenix companies 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. 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 Fixed Budget Report For Year Ended December 31, 2019 ales $3,150,000 ost of goods sold, Direct materials $915,000 Direct labor 240,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($45,000 is variable) 210,000 Plant management salaries 200,000 1,925,000 Gross profit 1,225,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 415,000 General and administrative expenses Advertising expense 125,000 Salaries 230,000 Entertainment expense 80,000 435,000 Income from operations $ 375,000 Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 per Unit Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping 0.00 0 0 Total variable costs Contribution margin Fixed costs Depreciation--Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense $ 0 $ 0 $ 0 Total fixed costs Income from operations