Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,300$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,060,000$

Costs

Direct materials $1,009,800$

Direct labor $214,200$

Sales staff commissions $61,200$

Depreciation$$Machinery $300,000$

Supervisory salaries $204,000$

Shipping $244,800$

Sales staff salaries $($fixed annual amount$)247,000$

Administrative salaries $431,000$

Depreciation$$Office equipment $195,000$

Income $ $153,000$

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,300$ and $16,300$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,300$ units. Prepare a simple budgeted income statement if $18,300$ units are sold.