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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 15,100 units.

PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Sales	$ 3,171,000
Costs
Direct materials	996,600
Direct labor	241,600
Sales staff commissions	60,400
DepreciationMachinery	300,000
Supervisory salaries	200,000
Shipping	211,400
Sales staff salaries (fixed annual amount)	251,000
Administrative salaries	552,450
DepreciationOffice equipment	199,000
Income	$ 158,550

Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The companys business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted income statement if 18,100 units are sold.