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 Cost of goods sold $3,000,000 $915,000 225,000 60,000 315,000 210,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries 210,000 1,935,000 1,065,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 105,000 235,000 430,000 General and administrative expenses Advertising expense Salaries Entertainment expense 125,000 230,000 90,000 445,000 $ 190,000 Income from operations Problem 8-1A Part 1&2 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 Answer is not complete. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Flexible Budget for: Variable Amount per Unit Total Fixed Cost Units Sales of 14,000 Unit Sales of 16,000 Sales 200.00 S 3,200,000 2,800,000 Variable costs 61.00 16.00 4.00 4.00 6.00 7.00 Direct materials Direct labor Machinery repairs Utilities Packaging Shipping 854,000 224,000 56,000 56,000 84,000 98,000 976,000 256,000 64,000 64,000 96,000 112,000 Total variable costs Contribution margin Fixed costs 98.00 1,372,000 1,568,000 102.00 1,428,000 1,632,000 Depreciation Plant equipment (straight 300,000 line Advertising expense Entertainment expense Plant management salaries Utilities Sales salary Salaries S 300,000 S Total fixed costs