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[The following information applies to the questions displayed below.] 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	981,500
Direct labor	226,500
Sales staff commissions	45,300
DepreciationMachinery	305,000
Supervisory salaries	201,000
Shipping	241,600
Sales staff salaries (fixed annual amount)	255,000
Administrative salaries	420,100
DepreciationOffice equipment	193,000
Income	$ 151,000

Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1

Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The companys 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.

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Req 1 and 2

Req 3

Prepare flexible budgets at sales volumes of 14,100 and 16,100 units.

	PHOENIX COMPANY Flexible Budgets For Year Ended December 31 Flexible Budget Flexible Budget for: Variable Amount per Unit Total Fixed Cost Units Sales of 14,100 Unit Sales of 16,100 Variable costs Fixed costs

The companys 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.

	PHOENIX COMPANY Budgeted Income Statement For Year Ended December 31 Sales (in units) 18,100

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