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 $966,400$

Direct labor $226,500$

Sales staff commissions $60,400$

Depreciation$$Machinery $305,000$

Supervisory salaries $204,000$

Shipping $241,600$

Sales staff salaries $($fixed annual amount$)252,000$

Administrative salaries $561,550$

Depreciation$$Office equipment $195,000$

Income $ $158,550$

Required:

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

$3.$ The company$$s 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.