Phoenix Company's 2015 master budget Included the following fixed budget report. It is based on Axpected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 t gut $3,000,000 Sales...... Cost of goods sold Direde materials, Direct labor Machinery repairs (variable cost) Deprecation--plant equipment (straight-line). Utilities ($45.000 (s variable) Plant management salaries ... Gross profit. Selling expenses Packaging Shipping Sales salary (foed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $975,000 225,000 60,000 300,000 195.000 200.000 1.955.000 1,045.000 of 1 75,000 105.000 250.000 430,000 ******** 125.000 241,000 90.000 456.000 $159.000 Required 1. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per un or their amounts for the year, as appropriate. 2. Prepare flexible budgets (sce Exhibit 23.3) for the company at sales volumes of 14,000 and 16,000 units 3. The company's business conditions are improving. One possible result is a sales volume of 18.000 units. The company president is confident that this volume is within the relevant range of existing ca pacity. How much would operating income increase over the 2015 budgeted amount of $159.000 if this level is reached without increasing capacity? 4. An unfavorable change in business is remotely possibles in this case, production and sales volume for 2015 could fall to 12,000 units. How much income (or loss) from operations would occur if sales vol ume falls to this level? 00)