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

PHOENIX COMPANYFixed BudgetFor Year Ended December $31$Sales$ $3,213,000$Costs$$Direct materials$994,500$Direct labor$214,200$Sales staff commissions$45,900$Depreciation$$Machinery$305,000$Supervisory salaries$204,000$Shipping$229,500$Sales staff salaries $($fixed annual amount$)247,000$Administrative salaries$618,250$Depreciation$$Office equipment$194,000$Income$ $160,650$

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

Required:

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