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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,000$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,000,000$

Costs

Direct materials $975,000$

Direct labor $225,000$

Sales staff commissions $45,000$

Depreciation$$Machinery $300,000$

Supervisory salaries $203,000$

Shipping $225,000$

Sales staff salaries $($fixed annual amount$)248,000$

Administrative salaries $432,000$

Depreciation$$Office equipment $197,000$

Income $ $150,000$

Problem $8-1$A $($Algo$)$ Preparing and analyzing a flexible budget LO P$1$

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,000$ and $16,000$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,000$ units. Prepare a simple budgeted income statement if $18,000$ units are sold.