Answer Happy

Required information [The following information applies to the questions displayed below.] Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 930,000 240,000 45,000 315,000 195,000 210,000 90,000 105,000 235,000 150,000 230,000 90,000 $3,150,000 1,935,000 1,215,000 430,000 470,000 $ 315,000

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. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Total variable costs Fixed costs Depreciation-Plant equipment (straight-line) Advertising expense Entertainment expense Plant management salaries Utilities Sales salary Salaries PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Total fixed costs Income from operations Variable Amount Total Fixed per Unit Cost Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000