Required information Problem 21-1A Preparation and analysis of a flexible budget LO P1 (The following information applies to the questions displayed below.] Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,300,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $915,000 Direct labor 240.000 Machinery repairs (variable cost) 45.000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($45,000 is variable) 180,000 Plant management salaries 190,000 Gross profit Selling expenses Packaging 75,000 Shipping 105.000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 125.000 Salaries 230,000 Entertainment expense 80,000 Income from operations 1,885,000 1,415,000 415,000 415,000 435,000 565,000 $ Problem 21-1A Part 1&2 Required: 182. 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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Variable Amount Total Fixed per Unit C ost Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 - _ 18 _ OSNO LA . TI IT 18 1 TUTTI TIT 1 ANI 1 Fixed costs TITUT TIT TTTTTTTTTTTTTTTTT 1 TTTTTTTTTTTTTT TTTTTTT TTTTTTTTTTT S o 11 |