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 prodi and sales volume of 15,000 units. $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) $ 930,000 240,000 60,000 300,000 180,000 210,000 1,920,000 1,080,000 Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 75,000 90,000 235,000 400,000 150,000 230,000 85,000 $ 465,000 215,000 Required: 1&2. Prepare fi cible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in budget as variable or fixed. PHOENIX COMPANY Required: 18 2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify budget as variable or fixed. Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 PHOENIX COMPANY Fixed Budget Report + For Year Ended December 31, 2017 Flexible Budget Variable Amount Total Fixed per Unit Cost Sales $ 200.00 3.000.000.00 Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Advertising expense Total variable costs Contribution margin Fixed costs Depreciation--Plant equipment (straight-line) 300,000 Utilities Plant management salaries 210,000 Sales salary 235.000 Advertising expense 150,000 Salaries 230,000 Entertainment expense 85,000 INT 0.00 0 0 300.000 300,000 210,000 235 000 150,000 230.000 85.000 210,000 235,000 150,000 230,000 Total foxed costs Income from operations $ 1210,000 S 1.210,000 $ 1210,000