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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,200$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,192,000$

Costs

Direct materials $972,800$

Direct labor $228,000$

Sales staff commissions $60,800$

Depreciation$$Machinery $300,000$

Supervisory salaries $201,000$

Shipping $212,800$

Sales staff salaries $($fixed annual amount$)248,000$

Administrative salaries $614,000$

Depreciation$$Office equipment $195,000$

Income $ $159,600$

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

Required:

$1$&$2.$ Prepare flexible budgets at sales volumes of $14,200$ and $16,200$ units.

$3.$ The company$$s business conditions are improving. One possible result is a sales volume of $18,200$ units. Prepare a simple budgeted income statement if $18,200$ units are sold.Prepare flexible budgets at sales volumes of $14,200$ and $16,200$ units.

PHOENIX COMPANY

Flexible Budgets

For Year Ended December $31$