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Phoenix Companys 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX

Phoenix Companys 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.

PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015
Sales $ 3,300,000
Cost of goods sold
Direct materials $ 945,000
Direct labor 225,000
Machinery repairs (variable cost) 45,000
Depreciationplant equipment (straight-line) 315,000
Utilities ($60,000 is variable) 195,000
Plant management salaries 190,000 1,915,000
Gross profit 1,385,000
Selling expenses
Packaging 90,000
Shipping 105,000
Sales salary (fixed annual amount) 235,000 430,000
General and administrative expenses
Advertising expense 125,000
Salaries 241,000
Entertainment expense 85,000 451,000
Income from operations $ 504,000
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Required 1&2.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 Flexible Budget for: Variable Amount per Unit Total Fixed Cost Units Sales of 14,000 Unit Sales of 16,000 Variable costs Fixed costs

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