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	244,800
Sales staff commissions	76,500
DepreciationMachinery	300,000
Supervisory salaries	196,000
Shipping	229,500
Sales staff salaries (fixed annual amount)	248,000
Administrative salaries	406,400
DepreciationOffice equipment	196,000
Income	$ 153,000

Required:

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

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
Variable costs
Fixed costs

The companys 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.

PHOENIX COMPANY
Budgeted Income Statement
For Year Ended December 31
Sales (in units)	18,300