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 $ 3,171,000 Costs Direct materials 996,600 Direct labor 226,500 Sales staff commissions 60,400 DepreciationMachinery 305,000 Supervisory salaries 199,000 Shipping 241,600 Sales staff salaries (fixed annual amount) 252,000 Administrative salaries 539,350 DepreciationOffice equipment 192,000 Income $ 158,550 Required: 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.

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

PHOENIX COMPANY
Flexible Budgets
For Year Ended December 31
	Flexible Budget		Flexible Budget for:
	Variable Amount per Unit	Total Fixed Cost	Units Sales of 14,100	Unit Sales of 16,100
Sales
Variable costs
Direct materials
Direct labor
Sales staff commissions
Shipping
Total variable costs	0.00		0	0
Contribution margin
Fixed costs
DepreciationMachinery
Supervisory salaries
Administrative salaries
DepreciationOffice equipment
Total fixed costs		$0	$0	$0
Income

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.

PHOENIX COMPANY
Budgeted Income Statement
For Year Ended December 31
Sales (in units)	18,100
Sales	$3,620,000
Less: Variable cost
Contribution margin
Less: Fixed cost
Income	$0