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		240,000
Machinery repairs (variable cost)		45,000
Depreciationplant equipment (straight-line)		330,000
Utilities ($45,000 is variable)		210,000
Plant management salaries		190,000			1,960,000
Gross profit					1,340,000
Selling expenses
Packaging		90,000
Shipping		90,000
Sales salary (fixed annual amount)		235,000			415,000
General and administrative expenses
Advertising expense		100,000
Salaries		241,000
Entertainment expense		85,000			426,000
Income from operations				$	499,000

1&2.Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all tems 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 FixedUnits Sales of Unit Sales of 16,000 Cost 14,000 Variable costs Fixed costs