Required:1&2. Prepare flexible budgets at sales volumes of 14,400 and 16,400 units.3. The company's business conditions are improving. One possible result is a sales volume of 18,400 units. Prepare a simple budgetedincome statement if 18,400 units are sold.Complete this question by entering your answers in the tabs below.Req 1 and 2Req 3Prepare flexible budgets at sales volumes of 14,400 and 16,400 units.PHOENIX COMPANYFlexible BudgetsFor Year Ended December 31Flexible BudgetVariable Amount Total Fixedper UnitCostFlexible Budget for:Units Sales Unit Sales ofof 14,400 16,400 Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400units.SalesCostaPHOENIX COMPANYFixed BudgetFor Year Ended December 31Direct materialsDirect laborSales staff commissionsDepreciation-MachinerySupervisory salariesShippingSales staff salaries (fixed annual amount)Administrative salariesDepreciation-office equipmentIncome$ 3,234,0001,001,000246,40046,200295,000198,000231,000251,000610,700193,000$ 161,700

Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per units of…

Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costa PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) - Administrative salaries Depreciation-office equipment Income $ 3,234,000 1,001,000 246,400 46,200 295,000 198,000 231,000 251,000 610,700 193,000 $ 161,700

Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costa PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) - Administrative salaries Depreciation-office equipment Income $ 3,234,000 1,001,000 246,400 46,200 295,000 198,000 231,000 251,000 610,700 193,000 $ 161,700

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PA: Echo Amplifiers prepared the following sales budget for the first quarter of 2018: It also has this...

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