Chapter 21 0 Required information Problem 21-1A 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. Fixed Budget Report Sales Cost of goods sold $3,308,e80 Direct materials Direct labor Machinery repairs (variable cost) s 908,008 66,e00 21e,003 Utilities ($60,090 is variable) Plant management salaries Gross profit 905,00e 1,395,0ee Packaging Shipping Sales salary (fixed annual amount) 90,800 9e,e00 235,88e 415,080 Advertising expense Salaries Entertainment expense 125,800 90,800 445,000 S 535,800 Income from operations Problem 21-1A Part 1&2 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. Problem 21-1A Part 1&2 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 PHOENK COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Flexible Budget for: Variable Amount Total Fixed Units Sales Unit Sales of per Unit Cost of 14,000 16,000 Variable costs Flxed costs