por Problem 21-1A Preparation and analysis of a flexible budget 21 Phoenix Company's 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Required PHOENIX COMPANY Fed Baiget Report 1. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per unit For Year Ended December 31, 2015 or their amounts for the year, as appropriate 2. Prepare flexible budgets (see Exhibit 21.3) for the company at sales volumes of 14,000 and 16,000 Cost of goods Direct materials $97.000 units. Director Machinery repairs (vartable cout) 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 Depreciation plant pere (righeline) 300.000 units. The company president is confident that this volume is within the relevant range of existing U (45.000 is we 195.000 capacity. How much would operating income increase over the 2015 budgeted amount of $159,000 it 200,000 1,955.000 1045.000 this level is reached without increasing capacity? prole 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 75.000 105.000 2015 could fall to 12,000 units. How much income (or loss) from operations would occur il sales Sales salary had on) 250.000 volume fails to this level? General de per Advertising pente Check (2) Budgeted income at 16.000 units. $200,000 Entamente pense (4) Potential operating loss. $144,000) 454.000 Income from one 60.000 SH dans 125.000