connect PROBLEM SET A 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. Problem 21-1A Preparation and analysis of a flexible budget P1 PHOENIX COMPANY Fired Budget Report Fer Year Ended December 31, 2017 53.000.000 $975,000 225.000 50.000 300,000 195,000 200.000 Sales Cost of goods sold Direct mais Direct labor Machinery repairs variable cost Depreciation-Plantequipment straight feel Usb (45.000 ls variable Punttangements Grosse Selling expenses Packaging Shipping Sales salary ed annual amount General and administrative expenses Advertising expense Sres... Entertainment expense Income from operations 1955.000 1.045.000 75,000 105,000 250,000 430.000 125.000 241,000 50,000 M56.000 $ 159,000 Check 2 Budgeted income at 10.000 units. $200.000 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 21.3) for the company at sales volumes of 14,000 and 16,000 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of exist- ing capacity. How much would operating income increase over the 2017 budgeted amount of S159.000 if this level is reached without increasing capacity 4. An unfavorable change in business is remotely possible in this case, production and sales volume for 2017 could fall to 12.000 units. How much income (or los) from operations would occur if sales vol- ume falls to this level? Refer to the information in Problem 21-1A. Phoenix Company's actual income statement for 2017 (41 Poto ning boss 144.000 Problem 21-2A Dennan nh