Return to question Required information [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 $ 3,234,000 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income 1,001,000 231,000 61,600 305,000 201,000 231,000 247,000 604,700 190,000 $ 161,700 Required: 1&2. Prepare flexible budgets at sales volumes of 14,400 and 16,400 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,400 units. Prepare a simple budgeted income statement if 18,400 units are sold. Req 1 and 2 Req 3 Prepare flexible budgets at sales volumes of 14,400 and 16,400 units. PHOENIX COMPANY Flexible Budgets For Year Ended December 31 Flexible Budget Sales Variable costs Direct materials Direct labor Sales staff commissions Shipping Flexible Budget for: Variable Units Unit Total Fixed Amount per Sales of Sales of Cost Unit 14,400 16,400 $ $ 210.00 3,024,000 3,444,000 65.00 936,000 1,066,000 15.00 216,000 246,000 3.00 43,200 49,200 15.00 216,000 246,000 Total variable costs 98.00 Contribution margin $ 112.00 Fixed costs Depreciation-Machinery Supervisory salaries Sales staff salaries Administrative salaries Depreciation-Office equipment Total fixed costs Income 295,000 1,411,200 1,607,200 1,612,800 1,836,800 $ 295,000 $ 0 $ 0