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 $3,000,000 Cost of goods sold Direct materials $900,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Utilities ($45,000 is variable) Depreciation-Plant equipment (straight-line) Plant management salaries Gross profit 300,000 180,000 210,000 1,860,000 1,140,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual amount) 235,000 400,000 General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 125,000 230,000 85,000 440,000 $ 300,000 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. Variable costs Fixed costs PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Amount per Unit Flexible Budget for: Units Sales Unit Sales of Total Fixed Cost of 14,000 16.000