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 $3,000,000 Cost of goods sold Direct materials $975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($60,000 is variable) 180,000 Plant management salaries 190,000 1,960,000 Gross profit 1,040,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 235,008 415,000 General and administrative expenses Advertising expense 125,000 Salaries 230,000 Entertainment expense Income from operations. 80,000 435,000 $ 190,000 Problem 21-1A 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 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Variable Amount per Unit Total Fixed Cost of 14,000 Flexible Budget for Units Sales Unit Sales of 16,000