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.

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

Sales

PHOENIX COMPANY

Flexible Budgets

For Year Ended December $31$

Flexible Budget Flexible Budget for:

Variable Amount per Unit Total Fixed Cost Units Sales of $14,300$ Unit Sales of $16,300$

Sales

Variable costs

Direct materials

Direct labor

Sales staff commissions

Shipping

Total variable costs $0\mathrm{.}0000$

Fixed costs

Depreciation$$Machinery

Supervisory salaries

Sales staff salaries

Administrative salaries

Depreciation$$Office equipment

Total fixed costs $$0$ $$0$ $$0$

Income

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,30$

PHOENIX COMPANY

Budgeted Income Statement

For Year Ended December $31$

Sales $($in units$)18,300$

$$0$