Required information [The folowing 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 $3,000,000 Cost of goods sold. Direct materials $945,000 Direct labor 225,000 Machinery repairs variable cost) Depreciation-Plant equipment (atraight-line) Utilities ($45,000 is variable Plant management aalaries Groas profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 45,000 330,000 210,000 190,000 1,945,000 1,055,000 90,000 90,000 235,000 415,000 Ceneral and adminiatrative expenses dvertiaing expenae Salaries Entertainment expense 125,000 241,000 85,000 451,000 189,000 Income from operations s 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 not complete. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Total Flexible Budget for: Unit Variable Units Sales of Amount Fixed Cost Sales of per Unit S 200.00 14,000 16,000 $ 280,000X S 32,000 Sales Variable costs Direct materials Direct labor Machinery repairs Utlities Packaging Shipping 840,000x 960,000x 196,000 224,0000x) 42,000 60.00X 14.00x) 3.00 3.00 5.00x 6.00 48,000 42,000 48,000 80,0000X 70,000 84,000 96,000 Total variable costs 91.00 1.274,000 1.456,000 Fixed costs Depreciation-Plant equipment (straight-line) Utlities Plant management salaries Sales salary Advertising expense Salaries 315,000 315,000315,000 165,000 165,000165,000 220,000x 220,000x 220,000 235,000 235,000 235,000 100,000 100,0000x 100,000 230,000x 230,000 230,000 85,000 Entertainment expense 85,000 85,000 S IS 1,350,000 1,350,000 is 176.000xIS 394.000x IS Total fixed costs 1,350,000 Income from operations