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[The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units.

PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Sales	$ 3,234,000
Costs
Direct materials	1,001,000
Direct labor	231,000
Sales staff commissions	46,200
DepreciationMachinery	295,000
Supervisory salaries	201,000
Shipping	231,000
Sales staff salaries (fixed annual amount)	255,000
Administrative salaries	613,100
DepreciationOffice equipment	199,000
Income	$ 161,700

Required: 1&2. Prepare flexible budgets at sales volumes of 14,400 and 16,400 units. 3. The companys business conditions are improving. One possible result is a sales volume of 18,400 units. Prepare a simple budgeted income statement if 18,400 units are sold.