PROBLEM SET A CL Phoenix Company's 2017 master budget included the following fixed budget report. It is based expected production and sales volume of 15.000 units. 1. Prepe Analysis 2. Anal Problem 8.1A Preparation and analysis of a flexible budget PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Antuan $3,000,000 $975,000 225,000 60.000 300.000 195.000 200,000 1.955.000 1.045,000 Cost of goods sold Direct materials ..... Direct labore Machinery repairs variable cost) Depreciation-Pant equipment straight-ine)..... Utilities $45 000 is variable. Piant management salaties Gross profit Selling expenses Packaging Shipping Sales salary od annual amount General and administrative expenses Advertising expense Salaries Entertainment expense... Income from operations The pre the fac per mc 75.000 105 000 250,000 430,000 125.000 241.000 90,000 456 000 $ 159,000 Check 2 Budered income at 16.000 units, 5260.000 Required 1. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per un or their amounts for the year, as appropriate. 2. Prepare flexible budgets (see Exhibit 8.3) for the company at sales volumes of 14,000 and 16,000 unils. 3. The company's business conditions are improving. One possible result is a sales volume 18,000 units. The company president is confident that this volume is within the relevant range of ex ing capacity. How much would operating income increase over the 2017 budgeted amount of $13 if this level is reached without increasing capacity? 4. An unfavorable change in business is remotely possible in this case duction and sales volum 2017 could fall to 12,000 units. How much income for loss) from operations would occur if sal ume falls to this level? operating $144,000 tion and sales volume for occur if sales o The