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Required information Skip to question [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on
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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.
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
