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

$\backslash$table$[[\backslash$table$[[$Fined E$.$enget$],[$For Ver Eretad Dectimer $31]]],[$Sales $..............................,$$$3,000,000],[$Cors$,],[$Dinect mitierials $..........................,975,000],[$Dinect labor.,$225,000],[$Sales statf commissioss,$60\mathrm{.}000],[$Depreciation$-$Machinery $............................,300,000],[$Supervisery salaries $..................................,200,000],[$Shlppling $..................................,225,000],[$Sales staff salaries frued ammal amourt $...........,250,000],[$Adtinitrative salaries $...............................,411\mathrm{.}000],[$Depreciation$-$Office equipment $................,195,000],[$Income$,5159\mathrm{.}000]]$

Required

Classify all items listed in the fixed budget as variable or fixed. For variable costs, determine their amounts per unit. For fixed costs, determine their amounts for the year.

Prepare flexible budgets $($see Exhibit $21\mathrm{.}3)$ at sales volumes of $14,000$ and $16,000$ units.

The company's business conditions are inproving. One possible result is a sales volume of $18,000$ units. Prepare a simple budgeted income staternent $($as in Exhibit $21\mathrm{.}1)$ if $18,000$ units are sold.