Phoenix Company's 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $ 3,150,000 unt PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 Sales Cost of goods sold Direct materials $ 945,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation-plant equipment (straight-line) 330,000 Utilities ($60,000 is variable) 180,000 Plant management salaries 190,000 Gross profit Selling expenses Packaging 75,000 Shipping 105,000 Sales salary fixed annual amount) 235.000 oard 1,930,000 1,220,000 415,000 indar General and administrative expenses Advertising expense Salaries Entertainment expense 125,000 230,000 85,000 440,000 Income from operations $ 365,000 Required: 182. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 Flexible Budget Variable Amount Total Fixed per Unit Cost Flexible Budget for: Units Sales of Unit Sales of 14,000 16.000 Variable costs Fixed costs 3. The company's business conditions are improving. One possible result is a sales volume of approximately 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the 2015 budgeted amount of $365,000 this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (in units) Contribution margin (per unit) Contribution margin Fored costs Expected increase in operating income 4. An unfavorable change in business is remotely possible in this case, production and sales volume for 2015 could fall to 12,000 units. How much income (or loss) from operations would occursales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2015 Sales in units) 15,000 Contribution margin (per unit) Contribution margin Foxed costs Operating income (los)