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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $3,150,000 Cost of goods sold Direct materials $930,000 Direct labor 225.000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight 330,000 line) Utilities ($30,000 is 195,000 variable) Plant management salaries 1.930,000 190,000 Gross profit 1,220,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed 235,000 430,000 annual amount) General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 85,000 451,000 Income from operations $ 339,000 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 Variable Amount Total Fed per Unit Cost Flexible Budget for Units Sales Unit Sales of of 14,000 16,000 Variable costs 0.00 0 Ford $ ols