Phoenix Companys 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	$	915,000
Direct labor		210,000
Machinery repairs (variable cost)		60,000
DepreciationPlant equipment (straight-line)		315,000
Utilities ($45,000 is variable)		180,000
Plant management salaries		220,000			1,900,000
Gross profit					1,100,000
Selling expenses
Packaging		75,000
Shipping		105,000
Sales salary (fixed annual amount)		235,000			415,000
General and administrative expenses
Advertising expense		150,000
Salaries		241,000
Entertainment expense		85,000			476,000
Income from operations				$	209,000

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.