Tohono expected production and sales volume of 20,000 units. Company's 2017 master budget included the following fixed budget report. It is based on an TOHONO COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $3,000,000 Cost of goods sold 260,000 57,000 250,000 Machinery repairs (variable cost) Utilities (25% is variable cost) 200,000 Plant manager salaries140,000 2,107,000 893,000 Gross profit Selling expenses Packaging.. Shipping 80,000 116,000 General and administrative expenses 81,000 . 241,000 Salaries Entertainment expense 90,000 412,000 $ 125,000 Required 1. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per unit or their amounts for the year, as appropriate. 2. Prepare flexible budgets (see Exhibit 23.3) for the company at sales volumes of 18,000 and 24,000 units. 3. The company's business conditions are improving. One possible result is a sales volume of 28,000 units. The company president is confident that this volume is within the relevant range of exist- ing capacity. How much would operating income increase over the 2017 budgeted amount of $125,000 if this level is reached without increasing capacity? 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 2017 could fall to 14.000 units. How much income (or loss) from operations would occur if sales vol- ume falls to this level