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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,100$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,020,000$

Costs

Direct materials $996,600$

Direct labor $226,500$

Sales staff commissions $60,400$

Depreciation$$Machinery $300,000$

Supervisory salaries $202,000$

Shipping $211,400$

Sales staff salaries $($fixed annual amount$)251,000$

Administrative salaries $427,100$

Depreciation$$Office equipment $194,000$

Income $ $151,000$

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

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,100$ and $16,100$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,100$ units. Prepare a simple budgeted income statement if $18,100$ units are sold.