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's 2015 master budget included the rollowing fixed budget report ll is based on an expected production and sales volume of 15,000 units PHOENIX COMPAN Fixed Budget Report For Year Ended December 31, 2015 Sales 3,150,000 Cost of goods sold 900,000 Direct materials 240.000 Machinery repairs (variable cost) 60,000 Depreciation-plant equipment (straight- 330.000 Utilites $45,000 is vanable) 210,000 Plant management salanes 90,000 930,000 Gross profit 1,220.000 perishes Packaging 75,000 Shipping 05,000 sales salary (rixed annual amounty 235,000 415.000 General and administrative expenses Advertising expense 25,000 Salaries. 241,000 Entertainment expense 85.000 451.000 354.000 come from operations 5.00 Required 1&2. Prepare flexible budgets for the cornpany at sales volumes of 14,000 and 16,000 units and classify all ilerns lisled in the loked el as variable or luxed. PHOENIX COMPAN Fixed Budget Report For Year Ended December 31, 2015 Flexible Budget Flexible Budget for: Variable Amount Total Fixed Units Sales of Unit Sales of it cost 4,000 6,000 Sales, 210.00 2,940,000 3.360.000 variable costs urrect mator als 6200 868.000 992.000 Direct labor 15.00 210.000 240.000 300 42.000 48.000 Machinery repairs Utilities .00 56,000 6,000 Total variable costs 9600 1.3M4000 1,536,000 1.596,000 1.824.000 Contribution margin Fixed eesls Depreciation plant equipment (straight-line) utilities 135,000 135,000 135,000 200,000 200,000 200,000 Plant management salaries 235,000 235,000 235.000 Sales salary Advertising expense 100.000 100.000 100.000 Erilertairirrierii Uxpurise 85,000 85,000 85,000 Iotal fixed costs S 1.300.000 1 300.000 S 206000 524.000 Income from operations