Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1 The following information applies to the questions displayed below) 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 $3,150,000 5 945,000 225,000 60.000 330,000 180,000 200,000 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 (545,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary fixed annual amount) General and sinistrative expenses Advertising expense Salaries Entertainment expense Income from operations 1.940,000 1,210,000 90,000 105,000 235,000 430,000 125.000 241,000 85,000 451.000 $329.000 Required 12. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all ems listed in the fixed budget as variable or food PHOENIX COMPANY Faible Burbets For Year Ended December 31, 2019 Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for Units Sales Unut Sates of of 14.000 16.000 per Unit Fored to Net Problem 21.1A Part 3 3. The company's business conditions are improving One possible result is a sales volume of 18,000 units. The company provident is confident that the volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $329,000 if this level is reached without increasing capacity? POR COMPANY Contration Start Income Samen Tended December 2013 15.000 18000 On Common marge Carbon margin Fico Come 4. An unfavorable change in business is remately possible, in this case, production and sales volume for the year could fall to 12,000 unts. How much Income (or lose from operations would occur # sales volume falls to this level? (Enter any loss with minus sign) THOENIX COMPANY Tout Ended December 31, 2010 Sanur 15.000 Contribution magn per un Contribution margir 12.000 Denga