[The following information applies to the questions displayed below.] Phoenix Companys 2015 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, 2015 Sales $ 3,300,000 Cost of goods sold Direct materials $ 930,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Depreciationplant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,925,000 Gross profit 1,375,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 415,000 General and administrative expenses Advertising expense 150,000 Salaries 230,000 Entertainment expense 75,000 455,000 Income from operations $ 505,000

2.value: 4.28 pointsRequired information 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. rev: 03_18_2016_QC_CS-46127 ReferenceseBook & Resources Expanded tableDifficulty: 3 HardLearning Objective: 21-P1 Prepare a flexible budget and interpret a flexible budget performance report. Check my work

3.value: 4.28 pointsRequired information 3. The companys business conditions are improving. One possible result is a sales volume of approximately 18,000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the 2015 budgeted amount of $505,000 if this level is reached without increasing capacity? ReferenceseBook & Resources Expanded tableDifficulty: 3 HardLearning Objective: 21-P1 Prepare a flexible budget and interpret a flexible budget performance report. Check my work

4.value: 4.28 pointsRequired information 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 2015 could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) ReferenceseBook & Resources Expanded tableDifficulty: 3 HardLearning Objective: 21-P1 Prepare a flexible budget and interpret a flexible budget performance report. Check my work