Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,020,000 Costs Direct materials 981,500 Direct labor 211,400 Sales staff commissions 60,400 DepreciationMachinery 300,000 Supervisory salaries 197,000 Shipping 226,500 Sales staff salaries (fixed annual amount) 253,000 Administrative salaries 445,200 DepreciationOffice equipment 194,000 Income $ 151,000

1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units.

3. The companys business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted income statement if 18,100 units are sold.

Show Steps Please