Phoenix Companys 2017 master budget included the following f

Phoenix Company\'s 2017 master budget included the following fixed budget report. I expected production and sales volume of 15,000 units. OBLEM SETA oblem 23-1A paration and analysis flexible budget PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 3,000,000 Sales Cost of goods sold $975,000 225,000 Direct meterials Direct lebor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-linel 60,000 300,000 Usities (545,000 s variable) Plant management salaries 200,000 1.965,000 1,045,000 Gross profe Selling expenses 75.000 105,000 Packaging Shipping Sales selary Hxed annuel amount) 250000 430,000 General and administrative expenses 125,000 241,000 90,000456.000 Advertising expense Entertainmest expense ncome from operations $ 159.000 Required 1. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per or their amounts for the year, as appropriate. eck 2) Budgeted income 2. Prepare flexible budgets (see Exhibit 23.3) for the company at sales volumes of 14,000 and 16,000 uni 6.000 units,$260,000 3. The company\'s business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that this volume is within the relevant range of exis ing capacity. How much would operating income increase over the 2017 budgeted amount of S150 if this level is reached without increasing capacity? change in business is remotely possible: in this case, production and sales volune fir rating loss,$(144,000 2017 could fall to 12.000 units. How much income (or loss) from operations would ume falls to this level? occur if sales o The blem 23-2A paration and analysis flexible budget ormance report Refer to the information in Problem 23-1A. Phoenix Company\'s actual income statement for 2017ollow PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 P2 A1 Sales (18,000 units)... Cost of goods sold $3,648,000 Direct materials Direct labo Machinery repairs (varlable cost) Ubilities (faed cost & $147,500) Plart management salaries. $1,185.000 278,000 63,000 300,000 200,500 Gross proft Selling experses 210,000 2236500 1,411,500 Shipping Sales salary (annual) 87,500 118.500 General and administrative expenses 132,000 241,000 ncome from operations

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Solution-4:-

Solution for 1:-
Variable sales
Sales: $3,000,000 / 15,000 units =	$200
Variable costs:
Direct materials: $975,000 / 15,000 units	$65
Direct labor: $225,000 / 15,000 units	$15
Machinery repairs: $60,000 / 15,000 units	$4
Utilities: $45,000 / 15,000 units	$3
Packaging: $75,000 / 15,000 units	$5
Shipping: $105,000 / 15,000 units	$7
Fixed costs:
Utilities ($195,000 – $45,000 is variable)	$1,50,000