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 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses $3,000,000 $915,000 225,000 60,000 315,000 180,000 180,000 1,875,000 1,125,000 Packaging 90,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 430,000 General and administrative expenses Advertising expense 100,000 Salaries Entertainment expense Income from operations 241,000 85,000 426,000 $ 269,000 Required: 1&2. 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. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Total variable costs PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Contribution margin Fixed costs Depreciation-Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense Total fixed costs Income from operations Flexible Budget Variable Amount per Unit Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 0.00 0 0 $ 0 $ 0 $ 0