Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,200 units.

PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Sales	$ 3,040,000
Costs
Direct materials	988,000
Direct labor	228,000
Sales staff commissions	45,600
DepreciationMachinery	295,000
Supervisory salaries	204,000
Shipping	243,200
Sales staff salaries (fixed annual amount)	250,000
Administrative salaries	438,200
DepreciationOffice equipment	196,000
Income	$ 152,000

Required:

1&2. Prepare flexible budgets at sales volumes of 14,200 and 16,200 units.

3. The companys business conditions are improving. One possible result is a sales volume of 18,200 units. Prepare a simple budgeted income statement if 18,200 units are sold.