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. $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation Plant equipment (straight-line) Utilities ($30,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 960,099 240,000 45,000 315,000 195,000 200,000 1,955,000 1,045,000 75,000 90,000 235,800 400,090 150,000 230,000 90,000 470,000 175,000 $ Required: 18 2. Prepare flexible budgets for the company of sales volumes of 14.000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed. For Year Ended December 31, 2019 Flexible Budget Variable Amount Total Fixed per Unit Cost Flexhole Budget or Units Salesunil Sales of of 14,000 16,000 1 Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping 898,000 224,000 42,000 1,024,000 256,000 48,000 1 70.000 M1 80.000 11 1 1 0.00 1,232,000 1,408,000 Total variable costs Contribution margin Fixed costs Utilities Plant management salaries Sales salary Advertising expense Salaries TUL DIT 1 165000 200.000 235,000 150,000 200.000 235,000 150.000 200.000 235,000 150.000 1 00.000 90.000 000'08 Entertainment expense Depreciation-Plant equipment (straight-line) $ 840,000 675,000 S 675,000 Total fixed costs Income from operations