Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,400$ units. Prepare flexible budgets at sales volumes of $14,400$ and $16,400$ units. $\backslash$table$[[$PHOENIX COMPANY$],[$Budgeted Income Statement,$],[$For Year Ended December $31,],[$Sales $($in units$),],[$Sales$,],[$Less: Variable cost,$],[$Contribution margin,$],[$Less: Fixed cost,$],[$Income$,$$$]]$

$\backslash$table$[[\backslash$table$[[$PHOENIX COMPANY$],[$Fixed Budget$],[$For Year Ended December $31]],],[-,$$$3,080,000],[$Costs$,],[$Direct materials,$985,600],[$Direct labor,$246,400,],[$Sales staff commissions,$77,000,],[$Depreciation$-$Machinery,$300,000,],[$Supervisory salaries,$199,000],[$Shipping$,215,600],[$Sales staff salaries $($fixed annual amount$),247,000,],[$Administrative salaries,$464,400,],[$Depreciation$-$Office equipment,$191,000],[$Income$,$$$154,000]]$

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.