Required information The following information applies to the questions displayed below] Phoenix Company's 2017 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, 2017 Sales Cost of goods sold $3,300,000 Direct material:s Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($38,800 is variable) Plant management salaries $ 960,80 225,800 60,800 315,000 195,680 199,000 1.945,880 Gross profit Selling expenses 1,355,0e0 Packaging Shipping Sales salary (fixed annual amount) 98,080 185,000 235,000430,800 General and administrative expenses Advertising expense Salaries Entertainment expense 100,000 241,909 99,000 431,000 Income from operations $ 494,000 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. Fixed Budget Report For Year Ended December 31, 2017 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 Part 1 of 3 10 points or Year Ended December 31. 2017 Fleaible Budge Flexible Budget lor Veriable Amouet Total Fixed Units SalesUnit Sales of Variable costs Referencers Fixed costs Phoenix Company's 2017 master budget included the following fixed budget report t is based on an expected production and sales volume of 15,000 units PHOENIX C Fixed Budget Report For Year Ended December 31, 2817 f 3 Sales Cost of goods sold $3,388,e06 Direct materials Direct labor Machinery repairs (variable cost) s 966,e00 225,000 60,800 315,000 195,009 Depreciation-Plant equipment (straight-line) Utilities ($30,000 is variable) Plant management salaries Gross profit Selling expenses 190,000 1,945,886e 1,355,668 Packaging Shipping Sales salary (fixed annual amount) 90,089 185,600 235,60043,00e General and administrative expenses Advertising expense Salaries Entertainment expense 100,009 241,86 90,000 431,00e 494,8ee Income from operations 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the 2017 budgeted amount of $494,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (in units) Contribution margin (per unit) Contribution margin Fixed costs Operating income 15,000 18,000 l Ihe tollowing intormation applies to the questions displayed below. Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENTX COMPANY Fixed Budget Report For Year Ended December 31, 20 $3,300,600 Sales Cost of goods sold $ 968,000 225,800 60,000 315,000 195,800 Direct materials Direct labor hinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($30,00e is variable) Plant management salaries 190,880 1,945,000 1, 355,0ee Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 90,000 1e5,eee 235,00 430,600 General and administrative expenses Advertising expense Salaries 180,e00 241,e08 90,000 Entertainment expense 431,00e Income from operations 494,00e 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 2017 could fall to 12,000 units How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (in units) Contribution margin (per unit) Contribution margin Flixed costs Operating income (oss) 15,000 12,000 4 30 Factory References quarter follow Fixed factory overheadc 4 30 AQ: Print AR Actual 2 Compute the direct labor cost variance, including its rate and efficiency variances. 30 AH Actual Hours SH- Standard Hours AR = Actual Rate SR Standard Rate Cost References 3. Compute the overhead c Budgoted overhead O Type here to 2, 3. Compute the overhead controllable and volume variances. ed overhead Budgeted fixed overhead