Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume ofunits.

PHOENIX COMPANY

Fixed Budget

For Year Ended December

Sales $

Costs

Direct materials

Direct labor

Sales staff commissions

DepreciationMachinery

Supervisory salaries

Shipping

Sales staff salariesfixed annual amount

Administrative salaries

DepreciationOffice equipment

Income $

ProblemASomething Preparing and analyzing a flexible budget LO P

Required:

& Prepare flexible budgets at sales volumes of andunits.

The companys business conditions are improving. One possible result is a sales volume of units. Prepare a simple budgeted income statement if units are sold.