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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units. $ 3,000,000 PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income 1,035,000 225,000 60,000 300,000 250,000 90,000 235,000 241,000 195,000 $ 369,000 Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required: 1&2. Prepare flexible budgets at sales volumes of 14,000 and 16,000 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. Prepare a simple budgeted income statement if 18,000 units are sold. Req 1 and 2 Req3 Prepare flexible budgets at sales volumes of 14,000 and 16,000 units. PHOENIX COMPANY Flexible Budgets For Year Ended December 31 Flexible Budget Variable Amount Total Fixed Cost $ 200.00 Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000 $ 2,800,000 $3,200,000 per Unit Sales Variable costs Direct materials 69.00 69.00 0 0 Fixed costs $ A 0 $ 0 $ 0 The company's business conditions are improving. One possible result is a sales volume of 18,000 units. Prepare a simple budgeted income statement if 18,000 units are sold. PHOENIX COMPANY Budgeted Income Statement For Year Ended December 31 Sales (in units) 18,000 $ 0

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