[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 $ 960.000 Direct labor 225,000 Machinery repairs variable cost) 45,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($30,000 is variable) 195,000 Plant management salaries 190,000 Gross profit Selling expenses Packaging 75,000 Shipping 105,000 Sales salary(fixed annual amount) 235,000 General and administrative expenses Advertising expense 100,000 Salaries 241,000 Entertainment expense 80,000 Income from operations 1.945,000 1.355,000 415,000 421,000 519,000 $ Problem 21-1A Part 1&2 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. 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 Variable Total Amount per Fixed Unit Cost 220.00 Flexible Budget for: Units Unit Sales Sales of 14.000 of 16,000 $ 3.520.000 Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping 896,000 210.000 56,000 42,000 84.000 84,000 1,024,000 240.000 64,000 48.000 96.000 96.000 6.00 6.00 00 00 00 00 98.00 122.00 1,372,000 1.708,000 1,568,000 1.952.000 & Total variable costs Contribution margin Fixed costs Depreciation-Plant equipment (straight-line) Utilities 315,000 135,000 315,000 135,000 315.000 135,000