Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,300$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,213,000$

Costs

Direct materials $994,500$

Direct labor $229,500$

Sales staff commissions $76,500$

Depreciation$$Machinery $300,000$

Supervisory salaries $197,000$

Shipping $214,200$

Sales staff salaries $($fixed annual amount$)254,000$

Administrative salaries $586,650$

Depreciation$$Office equipment $200,000$

Income $ $160,650$

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,300$ and $16,300$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,300$ units. Prepare a simple budgeted income statement if $18,300$ units are sold.

Answer rating: 100% (QA)

1 Flexible Budget at Sales Volume of 14300 units Variable Costs Direct materials 14300 units 994500 ... View the full answer