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 $979,200$

Direct labor $229,500$

Sales staff commissions $45,900$

Depreciation$$Machinery $300,000$

Supervisory salaries $200,000$

Shipping $229,500$

Sales staff salaries $($fixed annual amount$)254,000$

Administrative salaries $474,900$

Depreciation$$Office equipment $194,000$

Income $ $153,000$

Problem $23-1$A $($Algo$)$ Preparing and analyzing a flexible budget LO P$1$

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.