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 $975,000 Direct labor 240,000 Machinery repairs (variable cost) 60.000 Depreciation Plant equipment (straight-line) 330,000 Utilities ($30,000 is variable) 210,000 Plant management salaries 210.000 2,025,000 Gross profit 1,125,000 Selling expenses Packaging 90,000 Shipping 105,000 sales salary (fixed annual amount) 235.000 430,000 General and administrative expenses Advertising expense Salaries 125,000 241,000 Entertainment expense 75,000 441,000 Incone tron operations $ 254,000 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. Answer is complete but not entirely correct. PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Flexible Budget for: Variablo Units Unit Amount per Total Fixed Sales of Sales of Unit Cost 14,000 16,000 $ 210.00 2,940,000 3,360,000 Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping ISIS 65.00 16.00 4.00 910,000 1,040,000 224,000 256,000 56,000 64,000 28,000 32,000 84,000 96,000 98,000 112,000 SIS 2.00 6.00 7.00 100.00 110.00 1,400,000 1,600,000 1,540,000 1.760,000 $ Total variable costs Contribution margin Fixed costs Depreciation--Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense OOOOOOO 330,000 180,000 210,000 235,000 125,000 241,000 75,000 330,000 330,000 180,000 180,000 210,000 210,000 235,000 235,000 125,000 125.000 241,000 241,000 75,000 75,000 OC Total fored costs > $ 1,390,000 1,396,000 is 1.396.000 S 3,156,000 Income from operations 2,796,000