Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,400$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,234,000$

Costs

Direct materials $1,001,000$

Direct labor $231,000$

Sales staff commissions $61,600$

Depreciation$$Machinery $295,000$

Supervisory salaries $204,000$

Shipping $231,000$

Sales staff salaries $($fixed annual amount$)245,000$

Administrative salaries $607,700$

Depreciation$$Office equipment $196,000$

Income $ $161,700$

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,400$ and $16,400$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,400$ units. Prepare a simple budgeted income statement if $18,400$ units are sold.