Required information [The following information applies to the questions displayed below.) -f3 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. ces PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $3,150,000 Cost of goods sold Direct materials $930,000 Direct labor 225,000 Machinery repairs (variable 45,000 cost) Depreciation-Plant equipment 315,000 (straight-line) Utilities ($60,000 is 195,000 variable) Plant management salaries 210,000 1,920,000 Gross profit 1,230,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed annual 235,000 400,000 amount) General and administrative expenses Advertising expense 125,000 Salaries 241,000 Entertainment expense 90,000 456,000 Income from operations $ 374,000 40 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 Total Amount per Fixed Unit Cost Flexible Budget for: Units Unit Sales Sales of 14 000 OT 16,000 Variable costs Fixed costs