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 $930,000 Direct labor 225,000 Machinery repairs (variable 45,000 cost) Depreciation-Plant equipment (straight-line) 300,000 Utilities ($60,000 is 195,000 variable) Plant management salaries 180,000 1,875,000 Gross profit 1,275,000 Selling expenses Packaging 90,000 Shipping 90,000 Sales salary (fixed annual 235,000 415,000 amount) General and administrative expenses Advertising expense 150,000 Salaries 230,000 Entertainment expense 90,000 470,000 Income from operations $ 390,000 Required: Required: 182. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed. X Answer is not complete. 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 $ 210.00 $ 2,940,000$ 3,360,000 Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping SI 62.00 15.00 3.00 4.00 6.00 6.00 (868,000 (210,000) (42,000 (56,000 (84,000 (84,000 (992,000) (240,000) (48,000) (64,000) (96,000) (96,000 96.00 (1,344,000) (1,536,000) Total variable costs Contribution margin Fixed costs DepreciationPlant equipment (straight-line) Utilities Sales salary Salaries 333 300,000 135,000 235,000 230,000 (300,000 (135,000 (235,000) (230,000 (300,000) (135,000) (235,000) (230,000) Total fixed costs $ 900,000 $ (900,000) $ (900,000) $ 304,000 X $ 476,000 X Income from operations