Problem 23-1A Preparing and analyzing a flexible budget P1 A1 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. Red Budget Report For Your Ended December 31, 2019 Sales $3.000.000 Cost of sold Directed $975.000 225.000 Machinery repairs arcos 60,000 Depreciation Plantehtine) 300,000 (545.000 lb 195,000 Plantagens 200 000 1955.000 Crossro 1.065.000 Director Package Shoping Sales y Clande expenses 75.000 105.000 250 400.000 1250 2000 30 000 164.00 199.00 Required 1. Classify all items listed in the fixed budget as variable or fired. Also determine their amounts per unit or their amounts for the year, as appropriate Pape 903 2. Prepare flexible budgets (see Exhibit 23.3) for the company at sales volumes of 14.000 and 16.000 units Check (2) Budgeted income at 16.000 units, $260,000 3. The company's business conditions are improving. One possible result is a sales volume of 18.000 units. The company president is confident that this volume is within the relevant range of existing capacity. How much would operating income increase over the budgeted amount of $159.000 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 the year could fall to 12.000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (4) Potential operating loss, S(144,000)