Required information {The following information applies to the questions displayed below.) Phoenix Company's 2019 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, 2019 Sales $3,150,000 Cost of goods sold Direct materials $960,000 Direct labor 225,000 Machinery repairs (variable 60,000 cost) Depreciation-Plant equipment (straight-line) 315,000 Utilities ($60,000 is 210,000 variable) Plant management salaries 180,000 1,950,000 Gross profit 1,200,000 Selling expenses Packaging 90,000 Shipping 90,000 Sales salary (fixed annual 235,000 amount) 415,000 General and administrative expenses Advertising expense 100,000 Salaries 230,000 Entertainment expense 90,000 420,000 Income from operations $365,000 tequired: &2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed the fixed budget as variable or fixed. PHOENIX COMPANY PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Flexible Budget for: Variable Total Units Unit Sales Amount Fixed Sales of of 16,000 per Unit Cost 14,000 $ $ Sales $ 210.00 2.940,000 3.360,000 Variable costs Direct materials 64.00 8,960,000 10,240,000 Direct labor 15.00 210,000 Machinery repairs 4.00 560,000 Utilities 3.00 42,000 Packaging 5.00 70,000 Shipping 6.00 84,000 Advertising expense 97.00 113,580,000 Contribution margin 194.00 23,506,000 10.240,000 Fixed costs Depreciation-Plant equipment (straight-line) Advertising expense Entertainment expense Plant management salaries Utilities Sales salary Salaries 315,000 315,000 315,000 150,000 150,000 150,000 85,000 85,000 85,000 200,000 200,000 200,000 150,000 150,000 150,000 235.000 235,000 235,000 230,000 230,000 230,000 1,365,000 1,365,000 1,365,000 S $ $ 2.730,000 2.730,000 2.730,000 Total fixed costs Income from operations