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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,500$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,100,000$

Costs

Direct materials $1,007,500$

Direct labor $232,500$

Sales staff commissions $77,500$

Depreciation$$Machinery $305,000$

Supervisory salaries $205,000$

Shipping $217,000$

Sales staff salaries $($fixed annual amount$)254,000$

Administrative salaries $453,500$

Depreciation$$Office equipment $193,000$

Income $ $155,000$

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,500$ and $16,500$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,500$ units. Prepare a simple budgeted income statement if $18,500$ units are sold.