solve this

also solve part 2 and 3

Problem 23-1A Preparation and analysis of a flexible budget LO P1 The following information applies to the questions displayed below] Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Fixed Budget Report 31, 2017 Sales Cost of goods sold $3,000,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries $960,000 225,000 60,000 315,000 180,000 210,000 1,950,000 1,050,000 Gross profit Selling expenses 90,000 90,000 Packaging shipping Sales salary (fixed annual amount) 235,000415,000 General and administrative expenses 100,000 241,000 Advertising expense Salaries Entertainment expense 85,000 426,000 s 209,000 Problem 23-1A Part 1&2 Required: budget as variable or fixed. are flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classiy al tems listed in the fe PHOENIX COMPA Problem 23-1A Part 1&2 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget for Flexible Budget Variable Amount Total Fixed Units Sales Unit Sales of Costof 14,000 16,000 r Unit 0.00 For Year Ended December 31, 2017 Flexible Budget for Variable Amount Total Fixed Units Sales Unit Sales of of 14,000 Unit 16,000 0.00 Required information Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Flexible Budget for Variable Amount Total Fixed Units Sales Unit Sales of per Unit of 14,000 16,000 Advertising expense Depreciation-Plant equipment (straight-line) Direct labor Direct materials 0.00 Problem 23-1A Preparation and analysis of a flexible budget LO P1 (The following information applies to the questions displayed below] Phoenix Company's 2017 master budget included the following fixed budget report. t is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report Year Ended December 31, 2017 Sales cost of goods sold $3,000,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) utilities ($60,000 is variable) Plant management salaries $960,000 225,000 60,000 315,000 180,000 210,000 1,950,000 1,050,000 Gross profit Selling expenses 90,000 90,000 Packaging Shipping Sales salary (fixed annual amount) 235,0004 415,000 General and administrative expenses 100,000 241,000 Advertising expense Salaries 85,000426,000 209,000 expense Problem 23-1A Part 3 business conditions are improving. One possible result is a sales volume of 18,000 units. The company president volume is within the relevant range of existing capacity. How much would operating income increase over the 20 3. The company's confident that this budgeted amount of $209,000 if this level is reached without increasing capacity? 90,000 90,000 235,000 Shipping Sales salary (fixed annual amount) 415,000 General and adninistrative expenses 100,000 241,000 85,000 Advertising expense Salaries 426,000 $209,000 Entertainment expense Problem 23-1A Part 3 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 2017 budgeted amount of $209,000 if this level is reached without increasing capacity? PHOENIX COMPANY Margin Income 18,000 Sales (in units) 15,000