Phoenix Company's 2019 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, 2019 Sales $3,150,000 Cost of goods sold Direct materials $900,000 Direct labor 210,000 Machinery repairs (variable) 60,000 cost) Depreciation-Plant equipment (straight-line) 300,000 Utilities ($30,000 is variable) Plant management salaries. Gross profit 195,000 180,000 1,845,000 1,305,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed annual 235,000 430,000 amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 125,000 230,000 75,000 430,000 $ 445,000 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 Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Flexible Budget for: Variable Total Units Unit Amount per Fixed Sales of Sales of Unit Cost 14,000. 16,000 Variable costs 0.00 0 0 Fixed costs $ 0 $ 0 $ 0