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. $3,300,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $945,000 Direct labor 240,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 210,000 Gross profit Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 125,000 Salaries 230,000 Entertainment expense 75,000 Income from operations 1,965,000 1,335,000 415,000 430,000 490,000 $ 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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 per Unit Sales Variable costs 0.00 0 0 Fixed costs Fixed costs 0 $ 0 $ 0