Required information Problem 8-1A 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 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold $3,300,000 $915,000 210,000 Direct materials Direct labor Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) Utilities ($30,000 is variable 195,000 Plant management salaries 315,000 180,000 1,860,000 1,440,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 105,000 235,000 430,000 General and administrative expenses Advertising expense Salaries Entertainment expense 100,000 230,000 80,000 410,000 $ 600,000 Income from operations Problem 8-1A Part 1&2 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 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Flexible Budget for: Total Fixed Units Sales of 14,000 Variable Amount Unit Sales of per Unit Cost 16,000 Variable costs Fixed costs