Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. HOENIX OOMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,300,000 Sales Cost of goods sold Direct materials $915,000 225,000 60,000 330,000 195,000 Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense 1,935,000 1,365,000 210,000 90,000 90,000 235,000 415,000 125,000 241,000 80,000 Salaries Entertainment expense 446,000 Income from operations $ 504,000 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, 2017 Flexible Budget for: Flexible Budget Unit Sales of 16,000 Variable Amount Total Fixed Cost Units Sales of 14,000 per Unit Variable costs Fixed costs